The Pakistan Credit Rating Agency Limited
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Wajeeha Asghar

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PACRA Maintains Stability Rating of "Pak Qatar Daily Dividend Plan" under Pak Qatar Islamic Cash Fund

Rating Type Stability Rating
(02-Jun-23 )
(02-Dec-22 )
Action Maintain Initial
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

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 Daily Dividend Plan (PQDDP or the 'Plan') focus on generating competitive return who prefer daily dividend under a stable Money Market category. The objective to invest in low risk and liquid Shariah Complaint instruments. 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 far 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 ~76.9% cash in single bank rated AA whereas, ~20.5% in Corporate Sukuks rated AA at the end Mar’23. The duration and the WAM of the Plan stood at 4 days, limiting the exposure to interest rate and credit risk at the end Mar’23. The unit holding pattern of the Plan is 98% concentrated out of which ~65% 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.

About the Entity
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.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.