PACRA Maintains the Stability Rating of Alhamra Daily Dividend Fund

Alhamra Daily Dividend Fund ("ALHDDF" or "the Fund") is categorized under a medium-risk profile, with the objective of meeting investors' short to medium term investment requirements through the provision of a daily dividend via investment in Shariah compliant instruments. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 4,445mln, compared to PKR 1,971mln as of Dec'25 (the last review), representing more than a doubling of fund size over the review period, indicative of strong and growing investor appetite for the Fund's daily dividend distribution proposition within the Shariah compliant investment universe. In terms of asset allocation, approximately 91% of the portfolio was invested in cash, ~7% in TFCs/Sukuks, and ~2% in other receivables, reflecting a predominantly liquid portfolio with a selective allocation to short-term Shariah compliant debt instruments for incremental yield enhancement consistent with the Fund's daily dividend mandate. From a credit quality perspective, approximately 1% of the Fund's assets were invested in AAA rated instruments, ~90% in A+ rated instruments, and ~7% in A1 rated instruments, with the remainder in other exposures. The overall credit profile reflects the Fund's measured approach to credit selection within the Shariah compliant investment universe. The Fund's Weighted Average Maturity (WAM) stood at 1 day as of Jun'26, reflecting virtually zero sensitivity to interest rate movements and reinforcing the Fund's very strong liquidity position. This ultra-short maturity profile is particularly well-suited to the Fund's daily dividend distribution mandate, ensuring that the portfolio remains highly liquid and capable of meeting regular income payment obligations without undue pressure on the asset base. Meanwhile, the unit holding pattern indicates a low degree of concentration, with the top 10 investors accounting for only ~23% of the Fund's total holdings, reflecting a well-diversified and broad-based investor base. In terms of performance, the Fund reported a one-year return of 9.47% as of Jun'26, against a benchmark return of 9.43%, reflecting an outperformance of approximately 4 basis points. While the outperformance margin is modest, this outcome is considered a commendable result for a medium-risk Islamic income fund with a daily dividend mandate, demonstrating the Fund's ability to generate above-benchmark returns while maintaining its conservative, liquidity-first Shariah compliant investment discipline throughout the review period.
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.