The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Assigns Initial Rating to "Pak Qatar Stable Return Plan I" under Pak Qatar Islamic Asset Allocation Fund

Rating Type Stability Rating
(01-Nov-23 )
Action Initial
Long Term AA+(f)
Short Term -
Outlook Stable
Rating Watch -

Pak Qatar Islamic Asset Allocation Fund (or the "Fund") is an open-ended Shariah-compliant asset allocation fund. The Fund falls under a medium risk profile. The under-mentioned plans will initially be offered under the umbrella of the Fund i) Pak-Qatar Stable Return Plan I ii) Pak-Qatar Stable Return Plan II iii) Pak-Qatar Asset Allocation Plan I iv) Pak-Qatar Asset Allocation Plan II v) Pak-Qatar Asset Allocation Plan III vi) Pak-Qatar Asset Allocation
Pak Qatar Asset Management Limited is going to launch the first plan "Pak Qatar Stable Return Plan I" under Pak Qatar Islamic Asset Allocation Fund. The objective is to earn potentially higher returns by investing in Fixed Income instruments. The initial assigned rating reflects the Fund's moderate credit and interest rate risk profile emanating from its medium-risk investment strategy. The duration of the Plan is three months. The initial Fund size of the Plan is PKR 500mln. As per the rating criteria for the assigned rating, the Plan would remain invested as per the specified credit quality rating criteria.
The plan has invested ~75% in GoP Ijara Sukuk, ~15% in AA+ rated FIs Sukuk whereas the remaining ~10% has been invested in AA rated banks in the form of deposits as of Oct'23. The duration and WAM of the plan stood at 90 days in the Oct’23, limiting the exposure to interest rate risk and credit risk. The unit holding pattern of top ten investor concentration is 100% which is all related party holding, hence reducing redemption pressure. Going forward, the plan is intended to remain compliant with the stated rating criteria and it won’t take exposure to equity scrips.
Going forward, 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 Limited, established in 2021, is licensed by the SECP to carry out asset management and investment advisory business. The major shareholder of the Company is the holding company Pak Qatar Investment (PVT) Ltd which holds 52% of stake and remaining shareholder include FWU AG (20%), and Pak Qatar Family Takaful (5%). However, two board directors Mr. Owais Ansari and Mr. Kamran Saleem also hold 14% and 7%. The Company's board is composed of five members, with representation of two members from Pak Qatar Investment Limited, one representative of Pak Qatar Family Takaful Limited, one representative of FWU AG and one independent director. The CEO, Mr. Farhan Shaukat, FCA, has been associated with the group for over a decade heading Treasury function of the group. The AUMs of the Company stood at PKR 15.7bln at the end Sep’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.