Karachi, The Pak Qatar Islamic Cash Fund, an open-ended Shariah-compliant money market fund, has maintained a stable rating for its Pak Qatar Cash Plan (PQCP), This Plan focuses on generating competitive returns for investors preferring yearly dividends within a stable Money Market category.
According to The Pakistan Credit Rating Agency Limited, the PQCP, along with the Pak-Qatar Asan Munafa Plan and Pak-Qatar Daily Dividend Plan, forms a critical part of the Pak Qatar Islamic Cash Fund's investment portfolio. The Fund is dedicated to maximizing investor returns through Shariah-compliant, authorized investment avenues, adhering to a very low-risk profile. PQCP's primary goal is to invest in low-risk and liquid Shariah-compliant instruments, with a perpetual term and a policy of investing only in avenues rated double AA or higher. The Plan has the discretion to change its dividend frequency to benefit its unit holders, subject to prior intimation.
As of the end of September 2023, PQCP's Asset Under Management (AUM) size was PKR 2,670 million, slightly down from PKR 2,866 million in June 2023. The Fund's allocation included about 74.3% in deposits and placements with AA and above-rated banks, and approximately 23.4% in AA and above-rated Corporate Sukuk. The duration and Weighted Average Maturity (WAM) of the Fund, standing at 23 days at the end of September 2023, effectively limits exposure to interest rate and credit risks. The unit holding pattern of the Fund showed a high concentration among the top four investors, with about 91.26% being related parties, thereby reducing exposure to redemption pressures. Despite these concentrations, the Fund's strong liquid profile has sustained its ability to meet redemptions. The Fund remained compliant with credit quality criteria and achieved an annualized return of 18.6% as of September 2023, in line with its market peers.
PACRA notes that any significant changes in the investment policy or the rating criteria could impact the stability rating of the Plan. The Plan's risk profile may experience slight variations in response to the economic conditions' volatility.
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