The Pakistan Credit Rating Agency Limited
28-Aug-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA
PACRA Upgrades the Stability Rating of Alhamra Islamic Income Fund
| Rating Type | Stability Rating | |
|
Current (28-Aug-24 ) |
Previous (08-Mar-24 ) |
|
| Action | Upgrade | Maintain |
| Long Term | AA(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alhamra Islamic Income Fund (or the "Fund") reflects the Fund's medium-risk profile. The Fund objective is to generate risk adjusted returns by investing in short, medium and long-term shariah compliant fixed income instruments. The credit quality of the Fund was ~66% in Govt Sec./AAA, ~24.4% in AA and ~5.8% in AA- rated avenues. At the end of Jun'24, the Fund had allocated ~58.6% in GoP Ijara Sukuk. Whereas, ~30.3% in banks in the form of cash and placements, ~4% was invested in Sukuks, ~3.3% in Govt backed Securities, and the remaining was invested in others. The AUMs of the Fund stood at PKR 12,197mln at the end of Jun'24. While the WAM of Fund is stood at 814 days, exposing the Fund to high credit risk. The duration of the Fund stood at 276.27 days at end of Jun'24, exposing the Fund to interest rate risk. The top 10 investor concentration of the Fund stood at 27.63% at end of Jun'24, exposing the Fund to moderate redemption pressure.
Going forward, 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 is currently managing a diverse product slate of twenty two open-end funds and four voluntary pension schemes. MCBIM is also managing one of the largest AUMS under 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%. The general public holds the remaining ~11% of the shares. Mr. Khawaja Khalil Shah is the CEO of the company. There are four non-executive directors, three directors are independent and one executive director (CEO). The AUMS of MCBIM stood at PKR 225bln at end-Jun'24.