PACRA Assigns Initial Stability Rating to Mahaana Islamic Cash Fund

Mahaana Wealth Limited launched the Mahaana Islamic Cash Fund on 29 March 2023. The Investment objective is to provide competitive returns with maximum possible capital preservation by investing in low risk and liquid Shariah-compliant authorized instruments. Being a Shariah-compliant fund would primarily invest in cash and cash equivalents, such as short-term government bonds and money market instruments. The management company shall offer multiple plans under this fund and each plan have independent portfolio which are distinct to other plans. Initially, Mahaana Islamic Cash Fund is offered. subsequently, additional plans may also be launched. The fund and the plans offered shall follow the same investment objectives and benchmark. The WAM of net assets invested in the plan shall not exceed 90 days, where securities issued by federal govt. shall be excluded from ascertaining WAM. Mahaana Islamic Cash fund (MICF) is low risk plan, with perpetual duration. The plan primarily focuses on retail investors having short term liquidity needs. The plan will offer yearly dividend. However, the management company may change the dividend frequency with prior intimation. The Fund size of the Fund as of end Dec'23 was PKR 146mln. The company intends to enhance the footprints, by leveraging digital infrastructure and utilizing synergies with its shareholders. As of the end Dec'23, investment in Government securities (Ijara Sukuks) represented ~61.9% and 34.66% in Cash Deposits with "AA" rated Banks, and ~3.5% in Others. The WAM and the Duration of the Fund stood at 67 days at the period end Dec'23: representing medium exposure to interest rate risk and credit risk. The top 10 investors' concentration of the Fund, at the period end Dec'23 was ~96.7% exposing the Fund to high redemption pressure, however a significant portion is from related party, hence reducing the redemption and liquidity risk. Keeping in view the strong liquidity profile of the Fund the ability of the Fund to meet the redemptions in a timely manner is considered strong.
Going forward, compliance with the stability rating quality criteria for the assigned rating will remain crucial.

About the Entity
Mahaana is Pakistan’s first digital-only Asset Management Company licensed by the Securities and Exchange Commission of Pakistan (SECP), and a member of Mutual Funds Association of Pakistan (MUFAP). The brainchild of certified investment managers from Tundra Fonder (Sweden), Mahaana led the successful initiative to introduce digital wealth management models in Pakistan, securing approval from SECP. The company provides seamless digital onboarding, investment, and risk management, led by experts known for generating the best returns in emerging markets across the globe. Backed by IGI Investments (Packages Group), Swedish investment firm Vostok Emerging Finance (VEF), Hong Kong based Sparklabs group, and Y Combinator from United States, Mahaana is on a mission to empower Pakistanis with access to investment opportunities and promote financial inclusion. All investments offered by Mahaana are Shariah-compliant, ensuring that your financial goals are achieved in a manner consistent with your ethical values. The Company is headed by Mr. Shamoon Tariq, rated as top 10 global fund manager in Emerging Asia, Frontier Asia and MENA by Citywire. Experienced Investment Manager with a demonstrated history of working in the financial services industry. The Company’s board of directors comprises four members including the Chief Executive Officer. The board members possess strong profiles and skills suited to the financial services industry. The AUM size of Mahaana Wealth stood at PKR 146 mln at end of Dec'23.