PACRA Maintains Stability Rating of "Pak Qatar Income Plan" under Pak Qatar Islamic Income Fund
|Rating Type||Stability Rating|
Pak Qatar Islamic Income Fund (or the "Fund") is an open-ended shariah compliant Income fund. The Fund falls under medium 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 Monthly Income Plan ii) Pak-Qatar Monthly Income Plan and iii) Pak-Qatar Khalis Bachat Plan. Subsequently, additional plans may also be launched.
Pak Qatar Income Plan (PQIP or the 'Plan') focus on corporate and High Net Worth investors who prefer yearly dividend under a stable Income category. The objective to invest in medium to long-term income instruments as well as short-tenor money market instruments to generate superior, long-term, risk-adjusted returns in accordance with Shariah practices. The term of the Plan is perpetual. As per the investment policy of the Plan, the Plan can't invest in below single A 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 ~31% cash in banks majority rated AA, ~28% in Corporate and FIs Sukuks rated AA+ and above whereas, ~36% in GoP Ijarah Sukuks at the end Mar’23. The duration of the Plan stood at 36 days at the end Mar’23, exposing low interest rate risk. The WAM of the Plan stood at 906 days at the end Mar’23, exposing high credit risk. However, the WAM increased due to investment in long term GoP Ijarah Sukuks. The unit holding pattern of the Plan stood at 100% concentrated out of which ~96% is of related party holding, limiting redemption pressure.
Going forward, the plan ensures to diversify their investment in A and above rated avenues. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.
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.