Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Alhamra Islamic Money Market Fund
Rating Type | Stability Rating | |
Current (30-Aug-24 ) |
Previous (01-Mar-24 ) |
|
Action | Maintain | Maintain |
Long Term | AA+(f) | AA+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Alhamra Islamic Money Market Fund (or the "Fund") is a low-risk profile Fund. 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 AUMs of the Fund stood at PKR 22,060mln at the end of Jun'24. The credit quality of the Fund was ~50.8% in AA rated category, ~38.1% in Govt/AAA rated avenues, and the remaining was invested in others. The Fund had allocated ~42.5% of the Fund’s investments in banks in the form of cash, ~29.5% in GOP Ijarah Sukuk, ~17% in Shariah Compliant Placements, ~4.5% in Musharika certificate and ~3% in Short Term Sukuk as of Jun'24. The WAM of the Fund stood at 36 days, limiting the exposure to credit risk. The duration of the Fund was 54 days at the end of Jun'24, limiting the exposure to interest rate risk. The unit holding pattern of the Fund was ~65.47% representing top ten investor concentration; exposing the Fund to high redemption pressure.
Going forward, 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 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 two 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 225bln at end-Jun'24.