PACRA Maintains Stability Rating of "Pak Qatar Cash Plan" under Pak Qatar Islamic Cash Fund
|Rating Type||Stability Rating|
Pak Qatar Islamic Cash Fund (or the "Fund") is an open-ended shariah compliant money market fund. The Fund falls under a very low risk profile. The objective of the Fund is to maximize the investor's return by investing in shariah-compliant authorized investable avenues. The under mentioned plans are initially offered under the umbrella of the Fund i) Pak-Qatar Asan Munafa Plan ii) Pak-Qatar Cash Plan and iii) Pak-Qatar Daily Dividend Plan. Subsequently, additional plans may also be launched.
Pak Qatar Cash Plan (PQCP or the 'Plan') focus on generating competitive return who prefer yearly dividend under a stable Money Market category. The objective to invest in low risk and liquid Shariah Complaint instruments in accordance with Islamic Money Market Category. The term of the Plan is perpetual. As per the investment policy of the Plan, the Plan can't invest in below double AA rated avenues. While as for as asset allocation is concerned, the Plan can invest up to 100% in shariah-compliant Govt. securities and cash at Bank. The Plan may change the dividend frequency at its own discretion for the benefit of the unit holder with prior intimation.
Currently, the Plan had invested ~74.9% cash in single bank rated AA whereas, ~19.9% in Corporate Sukuks rated AA, at the end Mar’23. The duration and the WAM of the Plan stood at 4 days at the end Mar’23, limiting the exposure to interest rate and credit risk. The unit holding pattern of the Plan was 99% concentrated out of which ~79.3% is of related party holding, limiting the redemption pressure.
Going forward, the plan intended to diversify their investment in Govt/AAA rated avenues and will ensure to meet the given criteria over the short horizon. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.
Pak Qatar Asset Management Company Limited (PQAMC) was formed in 2021 offering Shariah Compliant Investment solutions and is part of Pak-Qatar Group, a pioneer in Takaful Industry in Pakistan. The Group comprise of Pak Qatar Family Takaful Limited(PQFTL), Pak-Qatar General Takaful Limited(PQGTL), Pak Qatar Investment (Pvt) Limited(PQIL), Sharq Trading & Merchandising Limited, MPQ Developers (Pvt) Limited. The group has been operating in Pakistan since 2007 has diverse experience of over fifteen years in providing takaful solutions in Pakistan. The CEO, Mr. Farhan Shaukat, FCA, has been associated with the group for over a decade heading Treasury function of the group. The company has launched three funds under Money Market, Income and Equity category under plan arrangement. AUM of the company stood at ~PKR 6.4bln at the end Mar'23.