PACRA Assigns Initial Stability Rating to Alhamra Islamic Cash Fund

Alhamra Islamic Cash Fund ("ALHICF" or "the Fund") is categorized under a low-risk profile, with the objective of providing competitive returns while ensuring high liquidity through investment in Shariah compliant money market instruments. The Fund operates under a Shariah-compliant mandate and is positioned for investors seeking low duration risk and limited mark-to-market volatility, in line with Islamic finance principles. Launched on September 7, 2026, the Fund reported Assets Under Management (AUM) of PKR 119mln as of Sep'26, reflecting its nascent stage of operations. From an asset allocation standpoint, approximately 97.82% of the portfolio was deployed in cash placements, with the balance held in other eligible instruments. This near-exclusively liquid positioning is consistent with the Fund's Shariah-compliant money market mandate and its emphasis on liquidity during the initial deployment phase. On credit quality, approximately 97.82% of assets were placed in AA+ rated instruments. The concentration in high-grade Shariah-compliant placements anchors the portfolio at the upper end of the investment-grade spectrum, with limited exposure to counterparty default and credit spread widening. The Fund's Weighted Average Maturity (WAM) stood at 1 day as of the review date, indicating negligible sensitivity to interest rate movements and a strong liquidity profile. This short duration is well aligned with the Fund's early operational phase, allowing the portfolio to absorb redemption requests with minimal liquidation risk and adequate liquidity coverage. The unitholding pattern remains concentrated, with the top 10 investors accounting for ~99% of total holdings. An associated company holds ~84% of net assets, a holding that is typically sticky in nature and provides a stable anchor to the investor base, mitigating near-term redemption pressure. The remaining units are spread across individual investors. While elevated unitholder concentration remains a key monitoring parameter, the liquid asset mix and one-day WAM support the Fund's capacity to meet redemptions promptly. Concentration is expected to diversify progressively as the Fund gains scale and broadens its investor base. In terms of performance, the Fund has been recently launched and does not yet have a return track record. A meaningful assessment of risk-adjusted and benchmark-relative performance is therefore not yet feasible. Performance will be reported in subsequent reviews as the portfolio stabilizes and the Fund progresses through its initial operational phase.
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 Shariah investment solutions. As of Dec 2025, 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 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.