PACRA Maintains Stability Rating of Alhamra Islamic Income Fund

Alhamra Islamic Income Fund ("the Fund") represents a Shariah-compliant fixed income solution designed to deliver stable returns through a diversified portfolio of Islamic debt instruments while maintaining a low-risk orientation. The Fund's investment strategy combines yield curve positioning with rigorous Shariah compliance, catering to investors seeking regular income within an Islamic framework. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 69.0 billion, establishing it as one of Pakistan's largest Islamic fixed income funds. In terms of asset class, 45% invested in Government of Pakistan Ijara Sukuks, 26% in bank deposits, and 23% in Development Finance Institutions (DFIs), with the remainder in other approved avenues. From a credit quality metrics, 54% of assets were allocated to Government Securities/AAA rated instruments, complemented by 20% in AA rated and 15% in AA+ rated avenues. This investment-grade concentration provides substantial protection against credit risk, while allowing for measured yield enhancement through its diversified Islamic portfolio. With a Weighted Average Maturity (WAM) of 620 days as of December 2024, the Fund maintains moderate exposure to credit risk. This duration profile reflects strategic positioning across Pakistan's Islamic yield curve, with the substantial sovereign Sukuk allocation (45%) serving as a stabilizing anchor for the portfolio.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
MCB Investment Management Limited (MCBIM) is a public listed company regulated by the Securities and Exchange Commission of Pakistan (SECP). It holds licenses for asset management, investment advisory, and pension fund management, catering to both Conventional and Shariah investment solutions. As of December 2024, MCBIM manages a diversified portfolio, including 26 Open-End Mutual Funds and 4 Voluntary Pension Schemes, while also maintaining a leading position in Separately Managed Accounts (SMA) and investment advisory services. MCBIM’s major shareholders include MCB Bank Limited (~81.42%), Adamjee Insurance Company Limited (~7.59%), and the general public (~9.28%). Mr. Khawaja Khalil Shah serves as the Chief Executive Officer of the company. The Board comprises a balanced composition of 4 Non-Executive Directors and 3 Independent Directors, ensuring robust governance, objective decision-making, and alignment with regulatory best practices. The Company’s assets under management (AUM) have grown significantly, reaching approximately PKR 588 Billion as of December 2024, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.