PACRA Maintains Stability Rating of Alhamra Islamic Money Market Fund

Alhamra Islamic Money Market Fund (the "Fund") reflects the Fund's low-risk profile. The investment objective of the Fund is to provide a reasonable rate of return with a maximum possible capital preservation by investing primarily in liquid Shariah Compliant money market securities. The assigned rating reflects the Fund's low credit risk profile emanating from the Fund's Investment policy to invest in avenues with sound liquidity. The AUMs of the Fund stood at PKR 20,963mln at the end of Dec’23. The Fund had allocated ~51% of the Fund’s investments in banks. While ~16.4% of the Fund’s investments were in Short Term Sukuk, ~13.2% in Shariah Compliant Placements, ~11.7% in GoP Ijara Sukuk, ~4.8% in Musharika certificate as of Dec'23. The WAM of the Fund also stood at 43 days, limiting the exposure to credit risk. The duration of the Fund was 38 days at the end of Dec’23. The unit holding pattern of the Fund was ~65.47% representing top ten investor concentration; limiting the exposure to redemption pressure. However, the ability to meet redemption remained sound on the back of the liquid profile. The Fund's performance during CY23 beat the benchmark and gave an annualized return of 20.2%.
Going forward, the Fund will invest in accordance with its authorized investment policy and maintain its exposure in Shariah Compliant instruments, however the allocations will be diversified appropriately. Material changes in the Fund's asset allocation strategy, impacting it's credit quality and/or exposure to interest rate risk, would affect the rating. Risk may vary slightly from time to time considering the volatility of economic conditions.

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 nineteen 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 CEO. The AUMs of MCBIM stood at PKR 164bln at end-Dec'23.