PACRA Maintains Stability Rating of Mahaana Islamic Cash Fund | Rating Watch

Mahaana Islamic Cash Fund ("MICF" or "the Fund") is a low-risk, Shariah-compliant money market solution designed to prioritize capital preservation while generating competitive returns through a diversified portfolio of high-quality Islamic money market instruments. The Fund's Assets Under Management (AUM) registered growth, rising to PKR 3,695 million as of Jun'26 from PKR 2,914 million in Dec'25, reflecting improved investor traction, though the Fund continues to operate at a relatively modest scale within the Islamic money market segment. On the asset allocation front, the Fund remained tilted toward bank placements (35.6%), followed by allocations in Musharaka (26.5%), short-term Sukuk (20.3%), and GoP Ijara Sukuk (16.4%), with the residual exposure spread across other permissible instruments. From a credit quality perspective, the Fund was predominantly concentrated in AA rated instruments (55.2%), while exposure to Government Securities/AAA rated avenues and AA+ rated instruments stood at 30.5% and 13.2%, respectively. The Fund's Weighted Average Maturity (WAM) and duration stood at 39 days, positioning it at a moderate level of credit and interest rate risk. This risk, however, is partly mitigated by the sizeable allocation to Government Securities/AAA rated instruments. Similarly, the unit holding pattern reflected a top-10 investor concentration of 40.0%, indicating moderate exposure to redemption risk, a concern that is comparably cushioned by the Fund's substantial placements with banks, which lend a degree of liquidity buffer against sudden redemption pressures. On the performance side, the Fund delivered an annualized return of approximately 10.6% as of Jun'26, outperforming its benchmark return of approximately 10.1%, though trailing marginally behind the peer average of approximately 10.5%. 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, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on rating.

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 digital wealth management solutions in Pakistan, having secured 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, bringing strategic vision and execution excellence to Mahaana's operations. The company's Board of Directors, comprising four highly qualified members, provides strong governance and sector-specific expertise to guide its growth trajectory. As of June 2026, Mahaana Wealth's Assets Under Management (AUM) stood at PKR 5,683 million, reflecting steady growth and investor confidence in its digital-first model, as the company continues to position itself as a distinctive player in Pakistan's evolving asset management landscape.