PACRA Maintains Asset Manager Rating of Pak Qatar Asset Management Company Limited | Positive Outlook

Pak Qatar Asset Management Company Limited ("PQAMC" or the "AMC") is part of the Pak Qatar Group, the pioneer and largest Takaful Group. While the sponsor’s expertise continues to provide strategic backing, PQAMC has established its standing through a well-diversified Shariah-compliant structure and a comprehensive product offering. PQAMC operates under a distinct model relative to industry peers by utilizing Pak-Qatar Family Takaful Limited (PQFTL) as an extension of its sales and distribution channel. The AMC manages its portfolio through two streams: (i) PQFTL’s policyholders’ funds, which represent the predominant share, and (ii) investors’ funds opened directly on the AMC’s platform. In terms of Voluntary Pension Schemes (VPS), PQAMC exclusively manages PQFTL’s VPS fund. The AMC has developed its own mobile application, “Pak-Qatar AMC,” the digital access is also available through the application of Pak Qatar Family Takaful Limited i.e. “PQFS”, PQFTL’s widely used mobile application. The application also offers Pak Qatar group products, which is an additional strength to cater broad clientele. The assigned rating also reflects the AMC’s strengthening market position, underpinned by expanding retail outreach and consistent outperformance across key fund categories. At the end of Jun’25, the assets under management rose significantly by ~2.2x to PKR ~63.7bln (Jun’24: PKR 29.4bln), while the Separately Managed Account (SMA) portfolio amounted to ~PKR 59bln (Jun’24: ~PKR 25bln). Consequently, the market share increased to ~1.7% (Jun’24: 1%). The PQAMCL holds ~2% market share in the Islamic AUMs industry as of Jun’25, reflecting its evolving position among peers. The AMC is managing four open-ended funds as part of its adequate fund mix. The Pak Qatar Asset Allocation Fund holds the largest share with a weightage of ~57% in the AMC’s investment offerings, while the Pak Qatar Islamic Income Fund holds ~22% as of Jun’25. The fund performance of PQAMC has largely remained above respective benchmarks, with notable outperformance in income, money market, and asset allocation categories, underscoring the AMC’s strength in Shariah-compliant fund management. In addition to its existing offerings, the AMC is expanding into the pension fund management space by providing investment advisory services to PQFTL. This initiative is expected to strengthen PQAMC’s portfolio mix and revenue base, while reinforcing its role within the group’s broader pension strategy. As of Jun’25, the Pension Fund Management industry stands at ~PKR 105.6bln in AUMs, with growth driven by government-backed Voluntary Pension Schemes reforms. Punjab and KP are transitioning to contribution-based schemes, creating new opportunities for private fund managers. Alongside these developments, the AMC continues to enhance retail penetration through PQFTL’s nationwide branch network of over 100 outlets, complemented by ongoing investments in digital platforms to improve accessibility and customer service. On the financial side, the PQAMC experienced positive growth during FY25; the AMC's topline stood at PKR 313mln (FY24: PKR 163mln). Moreover, the net profit during FY25 increased to PKR 134mln (FY24: PKR 80mln), while the AMC's equity stood at PKR 591mln (FY24: ~PKR 457mln), comfortably exceeding the regulatory requirement.
The rating is dependent upon the AMC's ability to sustain its market share 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
Pak Qatar Asset Management Company Limited, 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 Pak Qatar Investment (Private) Limited, 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. The AMC's Board is composed of five members, with representation of two members from Pak Qatar Investment (Private) Limited, one representative of Pak Qatar Family Takaful Limited, one representative of FWU AG, and one independent director.