Lahore, 11 Oct 2023:Pak Qatar Asset Management Company Limited (PQAMCL), a part of the pioneering and substantial Pak Qatar Group, has been assigned an initial rating by PACRA, reflecting its solidifying stance in the investment advisory and asset management sectors since its operational commencement in September 2021. Demonstrating a notable traction in the market, the Asset Management Company (AMC) has adeptly carved out a market niche, facilitating investors with maximized returns through its distinctive product suite and a versatile Shairah structure. With assets under management elevating from PKR 5.3bln in Dec’22 to approximately PKR 15.7bln as of Sep'23, and securing a current market share of around 1%, the company’s strategic initiatives and product offerings, including four open-ended funds, underscore its strengthening position amidst its peer group.
Notably, PQAMCL’s journey from its inception has been marked by the launch of a diversified portfolio of funds, of which the Pak Qatar Islamic Income Fund notably resides, making up approximately 48.45% of the total weightage in the company's investment offerings. The Pak Qatar Islamic Cash Fund, further segmented into three distinct plans, along with the Pak Qatar Islamic Stock Fund, which operates within the Islamic Equity category, illustrates the company’s endeavour to provide a multifaceted investment arena for its clientele.
The introduction of the Asset Allocation Fund under a plan structure and the underway work to launch additional plans under the Shariah Asset Allocation category, reflect the AMC's innovative approach towards broadening its offerings. Furthermore, since the fund’s initiation in Oct'22, PQAMCL has managed to uphold fund performance above industry averages. Managing a Separately Managed Account (SMA) discretionary portfolio that commands a ~5% market share in the advisory domain (as of end Jun'23) with a total industry size of ~477bln, PQAMCL demonstrates a potent presence in the sector.
Financially, the AMC has traversed a trajectory of positive growth, witnessing its topline burgeoning to PKR 105mln during FY23 from PKR 44mln in FY22, and net profit experiencing an uptick by approximately 61.6% to PKR 47mln during FY23. With the company’s equity standing at PKR 522mln at the end of Sep'23, which comfortably surpasses the regulatory requirement, the financial stability and growth of PQAMCL stand evident.
The assigned rating will be contingent upon PQAMCL’s capability to maintain its market share and perpetuate robust investment processes. A persistent ascending trend in fund performance, along with a consistent augmentation in market share, will be pivotal for maintaining and potentially elevating the assigned rating in the foreseeable future.