PACRA Assigns Initial Stability Rating to Alhamra Islamic Investment Savings Fund

Alhamra Islamic Investment Savings Fund ("AIISF" or "the Fund") is categorized under a medium-risk profile, with the objective of generating halal income through investment in a diversified portfolio of Shariah compliant income instruments. The Fund operates within an Islamic finance framework, making it suitable for investors seeking regular halal income returns with moderate credit risk exposure while adhering to Shariah principles. The Fund was launched on June 5, 2026. As of Aug'26, the Fund's Assets Under Management (AUM) stood at PKR 22,856mln, reflecting a strong initial traction since launch, indicative of growing investor confidence in the Fund's Shariah compliant income offering. In terms of asset allocation, approximately 99.3% of the portfolio was invested in cash, with the remainder in other eligible instruments, reflecting a near-exclusively liquid portfolio positioning consistent with the Fund's Shariah compliant income mandate and its emphasis on capital safety during the initial deployment phase. From a credit quality perspective, approximately 99.3% of the Fund's assets were invested in A+ rated instruments, with the remainder in other exposures. The overall credit profile is considered strong and well-structured, commensurate with the Fund's medium-risk mandate. The Fund's Weighted Average Maturity (WAM) stood at 1 day as of Aug'26, reflecting virtually zero sensitivity to interest rate movements and reinforcing the Fund's strong liquidity position. Meanwhile, the unit holding pattern reflects a relatively high degree of concentration, with the top 10 investors accounting for ~76% of the Fund's total holdings, thereby exposing the Fund to moderate-to-high redemption risk from a concentrated investor base. However, the Fund's near-fully liquid asset allocation and one-day WAM provide strong comfort regarding its ability to meet any potential redemption requirements swiftly. Investor concentration is expected to diversify progressively as the Fund gains scale and broadens its investor base over time. In terms of performance, the Fund has delivered an annualized return of 11.47% since inception against a benchmark return of 9.45%, reflecting an outperformance of approximately 202 basis points. This strong above-benchmark outcome is considered a commendable result for a newly launched medium-risk Shariah compliant income fund, demonstrating the Fund's strong capacity to generate competitive halal risk-adjusted returns from the outset while maintaining its conservative, liquidity-first Shariah compliant investment discipline.
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 rating.

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 Shariahinvestment solutions. 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’smajor 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 strong governance, objective decision-making, and alignment with regulatory best practices. The Company’s assets under management (AUM) have grown significantly, reaching ~PKR 387 Billion as of Jun'26.