PACRA Maintains Stability Rating of Mahaana Islamic Cash Fund | Assigns ‘Rating Watch’

As of Dec’25, the Fund’s AUM stood at PKR 2,914mln, reflecting a modest scale within the Islamic money market segment. The asset mix remained largely tilted towards short-tenor, Shariah-compliant placements, with ~39.4% deployed in Bai Muajjal transactions, 37.5% in bank deposits, 12.0% in short-term Sukuks, and 10.3% in Musharakah arrangements, with the residual exposure in ancillary instruments. From a credit quality standpoint, the Fund’s exposure was predominantly concentrated in AA rated avenues (37.5%), followed by 25.3% in Government Securities/AAA rated instruments and 24.9% in AA+ rated avenues. While the presence of sovereign and AAA exposures provides a degree of credit support and mitigates default risk, the overall credit matrix indicates a downward drift from higher-rated avenues relative to the benchmarks embedded in the assigned rating category. This shift exerts pressure on the credit quality profile of the Fund. The Weighted Average Maturity (WAM) stood at 32 days, positioning the Fund within the short-duration spectrum and limiting exposure to mark-to-market volatility. Liquidity risk remains contained, given the sizeable allocation to bank deposits and short-tenor placements that can be readily liquidated to meet redemptions. Unit holder concentration remains moderate, with the top ten investors accounting for ~40% of the total units. While this concentration elevates susceptibility to episodic redemption pressure, the Fund’s liquidity buffer through cash-equivalent placements provides adequate mitigation at present. Notwithstanding the above strengths, the rating is under downward pressure due to non-alignment with the stipulated rating criteria, particularly on the credit quality thresholds applicable to the assigned category. In view of the observed deviations and the need for sustained realignment of the asset allocation with the prescribed benchmarks, the Fund has been placed on Rating Watch.
Going forward, portfolio rebalancing in line with the assigned rating benchmarks remains critical. Any material change in asset allocation affecting credit quality, liquidity, or interest rate exposure will remain a key rating consideration.

About the Entity
Mahaana Wealth Limited holds the distinction of being Pakistan’s first digital-only Asset Management Company, duly licensed by the Securities and Exchange Commission of Pakistan (SECP) and recognized as a member of the Mutual Funds Association of Pakistan (MUFAP). Founded by certified investment professionals with global experience from Tundra Fonder (Sweden), Mahaana has pioneered the introduction of digital wealth management solutions in Pakistan, having successfully obtained regulatory approval from the SECP for its innovative model. The company is led by Mr. Shamoon Tariq, Chief Executive Officer, an accomplished investment manager recognized by Citywire as one of the Top 10 Global Fund Managers across Emerging Asia, Frontier Asia, and the MENA region. With extensive experience in international financial markets, Mr. Tariq brings strategic vision and execution excellence to Mahaana’s operations. Mahaana’s Board of Directors, comprising four highly qualified members, provides strong governance and sector-specific expertise to guide the company’s growth trajectory. As of December 2025, Mahaana Wealth’s Assets Under Management (AUM) stood at PKR 3,827 million, reflecting steady growth and investor confidence in its digital-first model. Mahaana Wealth continues to redefine Pakistan’s asset management landscape through innovation, transparency, and accessibility, positioning itself as the investment platform of choice for the digital age.