PACRA Maintains Stability Rating of Alhamra Daily Dividend Fund

Alhamra Daily Dividend Fund (or the "Fund") is a medium risk profile Fund. The investment objective of the Fund is to meet investors' short to medium-term investment requirements. The scheme seeks to provide investors a daily dividend through investment in Shariah-compliant instruments. The credit quality of the Fund was ~67.5% in A rated avenues, ~17.3% in A1 rated category, ~12.7% in AA rated avenues and ~0.1% in AAA rated avenues. At the end of Jun’24, the Fund had allocated ~79.9% in Banks, ~17.3% in TFCs/Sukuk while remaining was invested in others. The AUMs of the Fund stood at PKR 14,943mln at the end of Jun'24. The WAM of Fund stood at 18 days, limiting the exposure of credit risk. The duration stood at 17 days, limiting the interest rate risk. At the end of Jun'24, the top 10 investor concentration stood at ~74%, exposing the Fund to high 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.