PACRA Maintains Stability Rating Of Mahaana Islamic Cash Fund

Mahaana Islamic Cash Fund (or the "Fund") is a low risk profile Fund. The Investment objective is to provide competitive returns with maximum possible capital preservation by investing in low risk and liquid Shariah-compliant authorized instruments. Being a Shariah-compliant fund, it would primarily invest in cash and cash equivalents, such as short-term government bonds and money market instruments. The size of the Fund as at end Jun'24 was PKR 385mln. The Fund intends to enhance its footprints, by leveraging digital infrastructure and utilizing synergies with its shareholders. The Fund had allocated its assets as ~62.2% in Bank Placements, ~19.5% in Ijara Sukuks, ~18.2% in Short-term Sukuks and ~0.1% in others as at end Jun'24. The credit quality of the Fund as at end Jun'24 was ~67.2% in AA, and ~32.8% in AAA/Govt Securities. The WAM and the Duration of the Fund stood at 30 days at the period end Jun'24: representing low exposure to interest rate risk and credit risk. The top 10 investors' concentration of the Fund, at the period end Jun'24 was ~81% exposing the Fund to very high redemption pressure, however a significant portion is from related party, hence reducing the redemption risk.
Going forward, any material changes in the investment policy or devised rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Mahaana is Pakistan’s first digital-only Asset Management Company licensed by the Securities and Exchange Commission of Pakistan (SECP), and a member of Mutual Funds Association of Pakistan (MUFAP). The brainchild of certified investment managers from Tundra Fonder (Sweden), Mahaana led the successful initiative to introduce digital wealth management models in Pakistan, securing approval from SECP. The company provides seamless digital onboarding, investment, and risk management, led by experts known for generating the best returns in emerging markets across the globe. Backed by IGI Investments (Packages Group), Swedish investment firm Vostok Emerging Finance (VEF), Hong Kong based Sparklabs group, and Y Combinator from United States, Mahaana is on a mission to empower Pakistanis with access to investment opportunities and promote financial inclusion. All investments offered by Mahaana are Shariah-compliant, ensuring that your financial goals are achieved in a manner consistent with your ethical values. The Company is headed by Mr. Shamoon Tariq, rated as top 10 global fund manager in Emerging Asia, Frontier Asia and MENA by Citywire. Experienced Investment Manager with a demonstrated history of working in the financial services industry. The Company’s board of directors comprises four members including the Chief Executive Officer. The board members possess strong profiles and skills suited to the financial services industry. The AUM size of Mahaana Wealth stood at PKR 385 mln at end of Jun'24.