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

Pak Qatar Islamic Cash Fund (or the "Fund") is an open-ended Shariah-compliant money market fund. The Fund falls under a 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.
Pak Qatar Cash Plan under Pak Qatar Islamic Income Fund is a low risk profile Plan. The AUM size of this Plan was PKR 3,963mln at the end of Sep’24. The Fund asset quality is good and is in line with the rating criteria. As of the end of Sep’24, Fund's investment was ~58% in AA rated avenues, ~39% in Govt Securities/AAA and ~3% in AA- rated avenues while the remaining was invested in other categories. At the end of Sep’24, most investment was held in Banks in the form of cash & placements (~67%) followed by Sukuk & Commercial Papers-Government (~11%), Sukuk & Commercial Papers-Corporate (~10%) and remaining was invested in others. The WAM of the Plan stood at 38 days at the end Sep’24, limiting the exposure of credit risk. The duration of the Fund was 38 days at the end Sep’24, limiting the exposure of interest rate risk. The unit holding pattern of the Fund was ~69% representing top ten investor concentration; exposing the Fund to high level of redemption pressure.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.

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 36.9bln at the end of Sep'24.