PACRA maintains the Stability Rating of Alhamra Islamic Money Market Fund

Alhamra Islamic Money Market Fund ("AIMMF" or "the Fund") is categorized under a low-risk Islamic Money Market Scheme, with the objective of providing a reasonable rate of return while ensuring maximum possible capital preservation through investment primarily in liquid Shariah-compliant money market securities. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 3,832mln, compared to PKR 2,213mln as of Dec'25 (the last review), reflecting a significant ~73% growth in fund size during the review period, indicative of strengthened investor confidence in the Fund's Shariah-compliant investment strategy. In terms of asset allocation, approximately ~63% of the portfolio was invested in cash, ~11% in Shariah-compliant placements with banks and DFIs, ~16% in GoP Ijarah Sukuks, and ~7.5% in short-term Sukuks, highlighting the Fund's continued emphasis on maintaining a highly liquid and quality investment portfolio. From a credit quality perspective, ~22.9% of the Fund's assets were invested in Government/AAA rated instruments, ~66.9% in AA+ rated avenues, and ~7.5% in A1+ rated instruments. This investment-grade dominated credit profile reflects the Fund's conservative and Shariah-compliant investment approach, and is assessed as commensurate with its low-risk mandate. The Fund's Weighted Average Maturity (WAM) stood at 59 days as of Jun'26, indicating low sensitivity to interest rate movements while supporting adequate liquidity. Meanwhile, the unit holding pattern reflects moderate investor concentration, with the top 10 investors accounting for ~34% of the Fund's total holdings, exposing the Fund to moderate redemption pressure; however, the Fund's liquid portfolio composition provides sufficient capacity to meet potential redemption requirements. In terms of performance, the Fund reported a 365-day annualized return of 9.59% as of Jun'26, compared to its benchmark return of 9.37%, outperforming the benchmark by 22 basis points and demonstrating its ability to generate competitive returns within its low-risk investment mandate. However, while some improvement is noted at the lower end of the credit quality spectrum in line with the assigned rating criteria, the upper end remains short of the requisite threshold. Consequently, the Fund continues to be placed on Rating Watch until full compliance with the assigned rating criteria is achieved.
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
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 Jun'26, 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 approximately PKR 512 Billion as of Jun'26, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.