PACRA Maintains the Asset Manager Rating of Pak Qatar Asset Management Company Limited

The assigned rating of Pak Qatar Asset Management Company Limited ("PQAMC" or the "AMC") reflects its sustained market position, expanding retail outreach, and consistent performance across key fund categories. The AMC is supported by a seasoned management team with expertise across financial and operational functions. It is sponsored by Pak-Qatar Family Takaful Limited (PQFTL), a licensed Takaful operator in Pakistan, which continues to provide strategic support to the AMC. The distribution model of PQAMC differs from industry peers, as it uses PQFTL as an extension of its sales and distribution network. The AMC manages its portfolio through two streams: (i) PQFTL's policyholders' funds, which constitute the predominant share, and (ii) investors' funds opened directly through the AMC's platform. Accordingly, the AMC has strong retail penetration, primarily through policyholders' funds. As of end-Jun'26, industry AUM increased by ~16% YoY to ~PKR 4.3trln (Jun'25: ~PKR 3.7trln), with Shariah-compliant funds growing by 26.9% compared with 7.7% for conventional funds. Conventional funds represented 51.5% of total industry AUM, with AUM of PKR 2.2trln, while Shariah-compliant funds accounted for 48.5%, with AUM of PKR 2.1trln. Against this backdrop, PQAMC's AUM increased by ~26.9% to ~PKR 80.9bln (Jun'25: PKR 63.8bln), with its overall market share improving to ~1.9% (Jun'25: ~1.7%). Within the Shariah-compliant segment, the AMC's market share also improved to ~4.15% (Jun'25: ~3.82%). Most of the AMC's funds performed in line with or above their respective benchmarks, particularly in the money market and income categories. Money market and income funds generated relatively stable returns, while equity and asset allocation-oriented funds, including the Pak Qatar Islamic Stock Fund and Pak Qatar Asset Allocation Plan III, delivered adequate returns but trailed their benchmarks. Growth in the CIS portfolio was mainly driven by the Pak Qatar Cash Plan, Pak Qatar Asset Allocation Plan II, and Pak Qatar Islamic Stock Fund, while the SMA portfolio increased to ~PKR 73bln (Jun'25: ~PKR 59bln). The AMC is also expanding its product suite, having launched the Pak Qatar Islamic Fixed Term Fund - Plan II in Aug'26, with the Pak Qatar Islamic Exchange Traded Fund and the Rozana Aamdani Fund planned. It also intends to pursue a REIT Management license. In terms of VPS, PQAMC manages PQFTL's VPS fund and also provides investment advisory services to PQFTL in the pension space. PQFTL launched the GoKP Islamic Pension Fund in Dec'25, the GoPB Islamic Pension Fund in Jan'26, and the GoB Islamic Pension Fund in Jul'26. The Pension Fund managed by PQFTL stood at ~PKR 420mln at end-Jun'26 (Jun'25: PKR 145mln), which is expected to contribute to portfolio diversification and the AMC's revenue base. PQAMC follows a "Phygital" approach, combining a physical branch network with a digital platform (mobile app and web portal) that enables account opening, investment, and redemption without a branch visit. Retail outreach is supported by 3 dedicated PQAMC branches and 75 PQFTL branches, with a sales force of 20 and over 1,000 employees, respectively. As PQAMC relies on PQFTL's network for distribution, its expense ratio remains manageable, and ROE is on a sustainable growth path. On the financial side, the AMC's topline increased to PKR 540mln in FY26 (FY25: PKR 386mln), mainly due to higher management fee income on increased AUM. Net profit stood at PKR 170mln (FY25: PKR 133.5mln) and the equity base was reported at PKR 700.8mln (FY25: ~PKR 590.7mln).
The rating reflects the AMC's ability to sustain its relative standing and maintain sound investment processes, supported by progress toward greater operational self-sufficiency through direct investor growth, digital channels, and product diversification. A sustained positive trend in fund performance, alongside consistent growth in market penetration, will remain important to 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 PQAMC is its holding company, PQIL, which holds 76% of the stake. The remaining shareholding is held by PQFTL (7%), Mr. M. Kamran Saleem (10%), Mr. Zahid Hussain (5%), and Mr. Farhan Shaukat and Mr. Meraj Uddin Mazhar (1% each).