PACRA Maintains Stability Rating of Alhamra Cash Management Optimizer

Alhamra Cash Management Optimizer ("ALH CMO" or the "Fund") is low risk profile Fund. The objective is to provide competitive rate of return by investing primarily in liquid Shariah compliant money market avenues. AUM's of the Fund as of end Sep'24 was PKR 27,026mln. The Fund's asset quality is not in line with rating criteria, hence the rating watch is placed. As of the end of Sep’24, Funds investment was ~57% in Govt Securities/AAA rated avenues ~23% in AA rated avenues, ~9% in A‐1 rated avenues and ~5% in A1+ rated avenues. At the end of Sep’24, most investment was held in Banks in the form of Cash & Placement (~40%) followed by GOP Ijarah Sukuk (~37%), Short Term Sukuk (~15%), and remaining was invested in others. The WAM of the Fund stood at 85 days at the end of Sep’24, exposing the Fund to moderate credit risk. The duration of the Fund stood at 85 days at the end of Sep’24, exposing the Fund to moderate interest rate risk. The assigned rating captures the management's intent to enhance the allocation towards AAA rated avenues up to 50% and the remaining in AA+ rated avenues which is a prerequisite for the assigned rating. The unit holding pattern of the Fund was ~57.52% representing top ten investor concentration; exposing the Fund to high level of redemption pressure.
Going forward, in accordance with the investment policy and assigned ratings, the Fund will invest in Government securities, AAA or AA+ rated avenues according to its authorized investments. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
MCB Investment Management Limited (MCBIM or the "company") is a public listed company regulated by the SECP. MCBIM holds licenses for asset management, investment advisory, and pension fund management. MCBIM caters to both conventional and Shariah-compliant clientele and currently manages a diverse product slate of twenty-five open-end funds and four voluntary pension schemes. MCBIM also manages one of the largest AUMs in the SMA segment and holds a significant position in the investment advisory domain.
The major shareholders of MCBIM are MCB Bank Limited (~81.42%) and Adamjee Insurance Company Limited (~7.59%), with the general public holding the remaining ~11% of the shares. Mr. Khawaja Khalil Shah is the CEO of the company. There are four non executive directors, three independent directors and one executive director (CEO). The AUMs of MCBIM stood at PKR277bln at the end of Sep'24.