Karachi, July 06, 2012: JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the Management Quality rating of Pak-Oman Asset Management Company Limited (POAMCL) at ‘AM3’ (AM-Three). Outlook on the assigned rating has been revised to ‘Negative’ from ‘Stable’.
Financial health of the AMC has witnessed stress over time as also evidenced by the quantum of operational losses registered by the company. As a result of this, net equity of the company has eroded significantly. While fresh equity injection by sponsors is on the anvil, growth in assets under management (AUMs) is required to augment the revenue base of the company for sustainable profitable operations.
With the launch of government securities fund in 2011, number of collective schemes under management has increased to five. AUMs of the company are around Rs. 2b; strengthening the franchise value of the institution would facilitate sustainable growth in AUMs. Additionally, the AMC is also managing separately management accounts (SMAs) of individuals and institutional investors; funds managed under the ambit of investment advisory are limited. The management is in the process of developing policy framework for establishment of firewalls between investment advisory and collective investment schemes under management.
Year to date performance of four collective investment schemes under management compares favorably to peer funds; return of conventional asset allocation fund has remained on the lower side in its peer group. Expense ratio of both the asset allocation funds under management is on the higher side on account of small fund size and high frequency of investment and redemptions in the fund.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 506) at 35311861-70 or fax to 35311872-3.
Jamal Abbas Zaidi
Information herein was obtained from sources believed to be accurate and reliable; however,
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