PACRA Upgrades Asset Manager Rating of Pak Qatar Asset Management Company Limited

Pak Qatar Asset Management Company Limited ("PQAMC" or the "AMC") is part of the Pak Qatar Group, the pioneer and largest Takaful Group in Pakistan. The Group’s strong sponsor profile and industry expertise continue to provide strategic support to the AMC. The assigned rating upgrade reflects the AMC’s improving market position, expanding retail outreach, and consistent performance across key fund categories. PQAMC operates with a distinctive distribution model compared to many industry peers, leveraging Pak-Qatar Family Takaful Limited (PQFTL) as an extension of its sales and distribution network. The AMC manages its portfolio through two key streams: (i) PQFTL’s policyholders’ funds, which constitute the predominant share, and (ii) investors’ funds opened directly through the AMC’s platform. The AMC’s distinctive model is reflected in its higher retail penetration, primarily driven by policyholders’ funds, which account for ~80% of total AUMs. Additionally, HNWIs contribute ~4% of AUMs, further reinforcing retail participation and supporting the assigned rating. PQAMC continues to expand its retail footprint through PQFTL’s nationwide branch network of over 100 outlets, supported by ongoing investments in digital platforms. During CY25, the industry’s AUMs recorded modest growth of around 4%, reaching PKR 4.5 trillion (Dec’24: PKR 4.3 trillion). The money market category held the largest share at 56%, followed by the income category at 24% and the equity category at 20%. Growth in the equity category was primarily driven by stock market gains during CY25, along with a slight increase in fresh inflows. Meanwhile, the money market category posted moderate growth of ~8%, whereas the income category experienced a decline of 23%. While PQAMC followed a similar trend, the growth in its money market funds was significantly higher compared to the industry. As of end-Dec’25, the AUMs increased significantly by ~21% to PKR ~70.5bln (Dec’24: PKR 58.5bln), while the SMA portfolio also rose to ~PKR 66.3bln (Jun’25: ~PKR 59bln). Consequently, the AMC’s market share improved slightly to ~1.6% (Dec’24: 1.3%). In the Islamic AUMs segment, PQAMC holds ~3.3% market share as of Dec’25, reflecting its gradually strengthening standing within the Shariah-compliant asset management industry. The growth was primarily driven by a significant increase in the Pak Qatar Cash Plan, Pak Qatar Daily Dividend Plan, and Pak Qatar Asset Allocation Plan. In terms of Voluntary Pension Schemes (VPS), PQAMC exclusively manages PQFTL’s VPS fund. PQAMC has expanded its presence in the pension fund management space by providing investment advisory services to PQFTL. As part of the group’s broader pension initiatives, PQFTL has successfully launched the GoKP Islamic Pension Fund in Dec'25, followed by the GoPB Islamic Pension Fund in Jan'26, further strengthening the group’s presence in government pension schemes. These developments are expected to support PQAMC’s portfolio diversification and enhance its revenue base. As of Dec’25, the PFM industry stands at ~PKR 133bln (Dec'24: PKR 93bln). The fund performance of PQAMC has generally remained above respective benchmarks, with sound performance in the income, money market, and asset allocation categories, demonstrating the AMC’s investment management capability in the Shariah-compliant segment. On the financial side, PQAMC has demonstrated a positive growth trajectory. During 6MFY26, the AMC’s topline increased to PKR 229mln (6MFY25: PKR 135mln), while net profit rose to PKR 99mln (6MFY25: PKR 63mln). The AMC’s equity also strengthened to PKR 630mln (FY25: ~PKR 591mln).
The rating is dependent upon the AMC's ability to sustain its relative standing and uphold strong investment processes. A sustained upward trend in fund performance, along with a consistent increase in market share, will continue to have visible affirmation in the rating.

About the Entity
PQAMC, established in 2021, is licensed by the SECP to carry out asset management and investment advisory business. The major shareholder of the AMC is the holding company PQIL, which holds 66% of the stake, and the remaining shareholders include FWU AG (20%) and PQFTL (5%). Mr. Zahid Hussain and Mr. M. Kamran Saleem hold 2% and 7%, respectively.