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The Pakistan Credit Rating Agency Limited
Press Release

Date
09-Mar-23

Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of Alhamra Islamic Income Fund

Rating Type Stability Rating
Current
(09-Mar-23 )
Previous
(13-Sep-22 )
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Alhamra Islamic Income Fund or the "Fund" is a medium-risk profile fund. At end-Dec'22, the portfolio was invested 36.7% in Cash at Banks, 28.1% in Government Securities, 24.8% in Sukuk, 8.3% in Shariah Compliant Bank Deposits, whereas, remaining was invested in others including receivables. The WAM stood at 2.5 years mainly due to investments in long term government securities and corporate bonds. The duration of the Fund stood at 88 days depicting a moderate interest rate risk in accordance with medium-risk profile of the Fund. The investor concentration is on lower side standing at 28.8% in Dec’22 showing very low redemption risks.
Going forward, the Fund will invest as per its authorized investment policy, however, the allocations will be diversified appropriately. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

About the Entity
MCB-Arif Habib Limited Savings and Investments Limited (MCB-AH or the "Company") is a Public Listed Company, regulated by the SECP. MCB-AH holds licenses for Asset Management, Investment Advisory, and Pension Fund Management. MCB-AH caters to both conventional and Shariah-compliant clientele and is currently managing a diverse product slate of eighteen open-end funds and two voluntary pension schemes. MCB-AH 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 MCB-AH are MCB Bank Limited ~51%, Arif Habib Corporation Limited ~30%, and Adamjee Insurance Company Limited ~8%. The general public holds the remaining ~11% of the shares. Mr. Saqib Saleem is the CEO of the company. MCB-AH's control vests in an eight-member board of directors, including the CEO. There are four non-executive directors, while three directors are independent. The AUMs (CIS & VPS) of MCB-AH increased to PKR 160bln at end-Dec'22 (Jun'22: PKR 122bln).

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.