PACRA Upgrades the Stability Rating of Alhamra Wada Fund

Alhamra Wada Fund ("ALH WF" or the Fund) is a moderate-risk profile Fund. The duration of the Fund is perpetual; however, allocation plan(s) launched under this Fund may be perpetual or may have fixed maturity. The objective of the Fund is to provide an attractive promised return at maturity of the Allocation Plans under the Fund, by investing in shariah compliant fixed-income securities. The Fund is not directly offering its units to the investor, rather the offering shall only be made through allocation Plans launched from time to time under the umbrella of this Fund.
Currently, Alhamra Wada Plan IX and XI are under the umbrella of the Fund. The plans will invest in authorized avenues to meet investment objectives, with the Management Company ensuring promised returns valid for investors staying invested until plan maturity. Investment avenues for the plans are government securities, cash, money market placements, certificates of deposits and musharakas, and TDRs.
The AUM's of the Fund as of end Sep'24 was PKR 1,833mln. The Fund had strong credit quality with ~94.7% of placements in AAA rated avenues, while the remaining was invested in others. At the end of Sep’24, the Fund had allocated ~94.7% in GOP Ijarah Sukuks and the remaining was invested in others. The WAM of the Fund was 107 days at the end of Sep'24, representing moderate exposure to credit rate risk. The top 10 investors' concentration of the Fund, at the period end Sep'24 was ~70.74% exposing the Fund to high level of redemption pressure. Redemption pressure is addressed through investment in Govt. Securities. The rating upgrade is driven by management's commitment to executing the existing allocation strategy with consistency.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
MCB Investment Management Limited (MCBIM or the "Company") is a Public Listed Company, regulated by the SECP. MCBIM holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCBIM caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of twenty five open-end funds and four voluntary pension schemes. MCBIM is also managing one of the largest AUMs under the SMA segment and holds a significant position in the investment advisory domain.
The major shareholders of MCBIM are MCB Bank Limited ~81.42%, and Adamjee Insurance Company Limited ~7.59%. The general public holds the remaining ~11% of the shares. Mr. Khawaja Khalil Shah is the CEO of the company. There are four non-executive directors, three directors are independent and one executive director (CEO). The AUMs of MCBIM stood at ~PKR 276,814 at end-Sep'24.