PACRA Assigns Initial Rating to “Pak Qatar Income Plan” under Pak Qatar Islamic Income Fund

Lahore, December 05, 2022 (PPI-OT):Pak Qatar Islamic Income Fund (or the “Fund”) is an open-ended shariah compliant Income fund. The Fund falls under medium 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 Monthly Income Plan ii) Pak-Qatar Monthly Income Plan and iii) Pak-Qatar Khalis Bachat Plan. Subsequently, additional plans may also be launched.

Pak Qatar Income Plan (PQIP or the ‘Plan’) focus on corporate and High Net Worth investors who prefer yearly dividend under a stable Income category. The objective to invest in medium to long-term income instruments as well as short-tenor money market instruments to generate superior, long-term, risk-adjusted returns in accordance with Shariah practices. The term of the Plan is perpetual. The initial Fund size of the plan is 653mln. As per the investment policy of the Plan, the Plan can’t invest in below single A rated avenues. While as for as asset allocation is concerned, the Plan can invest up to 100% in shariah-compliant Govt. securities and cash at Bank. The plan may change the dividend frequency at its own discretion for the benefit of the unit holder with prior intimation.

Currently, the Plan had invested ~97.3% in single bank rated AA whereas ~2.3% in Sukuks in the end Oct’22. The duration and the WAM of the plan stood at 5-days, limiting the exposure to interest rate and credit risk. The unit holding pattern of top ten investor concentration is 99% which is all related party holding, hence reducing redemption pressure. Going forward, the plan is intended to invest in A and above rated avenues.

Out of which at least 50% would remain invested in AA- rated avenues. Going forward, the plan ensures to diversify their investment in AA-rated avenues. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.

For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425