PACRA Maintains Asset Manager Rating of Pak Qatar Asset Management Company Limited.

Pak Qatar Asset Management Limited ("PQAMCL" or the "Company") is part of Pak Qatar Group which is the pioneer and the largest Takaful Group. The prominent business acumen of the sponsor bodes well for the rating. PQAMCL stands apart amongst the peers with a unique product suite complemented by a versatile Shariah structure. The assigned rating incorporates the group strength, strong business acumen, improved market penetration in retail segment and satisfactory fund performance during the period under review. The business strategy of the Company is primarily focused on enhanced retail penetration wherein Pak Qatar Family Takaful Limited (PQFTL) is playing a pivotal role as a sales and distribution agent of the Company. As of Jun'24, the retail and institutional mix of the Company stood at 72:28. At the end of Jun'24, the assets under management mounted significantly by ~1.6 times to PKR ~29.4bln (Jun’23: PKR 11.2bln) with a current market share of ~1% while the industry grew by ~67%. The PQAMCL holds ~2% market share in the Islamic AUMs industry as of Jun'24. This represents the evolving position of the Company amongst the peer group. The Company is managing four open-ended funds as part of its diversified product portfolio among these offerings. The Pak Qatar Islamic Income Fund represents ~37% of the total weightage in the Company's investment offerings followed by the Asset Allocation Fund having a weightage of ~35% as of Jun'24. The Fund performance of the PQAMCL remained above the benchmark. The Company is also managing a Separately Managed Account (SMA) discretionary portfolio amounting to PKR ~25bln as of Jun'24. Going forward, the SMA portfolio would be gradually shifting to CIS. In addition to this, the Company is also penetrating in the pension fund scheme through providing investment services to PQFTL on its pension fund management. This would strengthen the existing portfolio of the PQAMCL and also its revenue base. The Company has been focusing on retail penetration through the PQFTL distribution channel which has more than 100 branches in major cities across Pakistan. The digital platform is also being strengthened for better retail penetration and enhanced customer services.
On the financial side, the PQAMCL experienced positive growth during the period under review. During FY24, the Company's topline significantly increased by 55% standing at PKR 163mln (FY23: PKR 105mln). Moreover, the net profit during FY24 increased by ~72% to PKR 81mln (FY23: PKR 47mln). The Company's equity stood at PKR 458mln at the end Jun'24, comfortably exceeding the regulatory requirement.
The rating is dependent upon the Company's ability to sustain its market share and uphold strong investment processes. A sustained upward trend in fund performance along with consistent increase in market share will continue to have visible affirmation in 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 AUMs of the Company stood at PKR 29.4bln at the end Jun'24.