PACRA Maintains Stability Rating of "Pak Qatar Asan Munafa 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 Asan Munafa Plan (PQAMP or the 'Plan') is focused on retail investors having short-term liquidity needs who prefer yearly dividend under a stable Money Market category. The objective is to invest in competitive return while seeking the maximum possible preservation of capital of low risk and liquid Shariah Compliant instruments. The term of the Plan is perpetual. The Plan may change the dividend frequency at its own discretion for the benefit of the unit holder with prior intimation.
The credit quality of the Fund was ~62% in AAA rated avenues and ~33% in AA rated avenues at the end of Mar’24. At the end of Mar’24, the Fund had allocated ~74% in GOP Ijara sukuk or commercial papers, ~21% in banks in the form of deposits and placements, and the remaining was invested in others. The duration and the WAM of the Fund stood at 90 days at the end of Mar’24 limiting the exposure to interest rate and credit risk. As of Mar'24, ~93.42% of the Fund's assets were held by the top 10 investors which includes related parties, diversified with granular participants, which act as major cushion in case of any aggressive redemption pressure by the remaining non-related party. Besides overall investment remains marketable with enough liquidity to meet any redemption risks.
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. Risk may vary slightly from time to time considering the volatility of economic conditions.

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 23.4bln at the end Mar’24.