PACRA Maintains Stability Rating of Alhamra Wada Fund

Alhamra Wada Fund ("ALH WF" or the Fund) is a low risk-profile Fund. The duration of the Fund is perpetual; however, allocation plan(s) launched by the MCBIM under this Fund may be perpetual or may have fixed maturity. The objective of the Fund is to provide an attractive promised return at maturity of the Allocation Plans under the Fund, by investing in shariah compliant fixed-income securities. The Fund is not directly offering its units to the investor, rather the offering shall only be made through allocation Plans launched from time to time under the umbrella of this Fund.
Currently, Alhamra Wada Plan VII, VIII, X, XI and XIIare under the umbrella of the Fund. The plans will invest in authorized avenues to meet investment objectives, with the Management Company ensuring promised returns valid for investors staying invested until plan maturity. Investment avenues for the plans are government securities, cash, money market placements, certificates of deposits and musharakas, and TDRs.
The AUM's of the Fund as of end Mar'24 was PKR 6,904mln. The Fund had strong credit quality with ~89% of placements in AAA rated avenues and 4% in AA rated category at the end of Mar’24. At the end of Mar’24, the Fund had allocated ~89% in Ijarah Sukuk, ~4% in banks in the form of deposits and placements and the remaining was invested in others. The WAM of the Fund was 93 days at the end of Mar'24, representing moderate exposure to credit risk. The Duration of the Fund stood at 97 days at the period end Mar'24; representing moderate exposure to interest rate risk. The top 10 investors' concentration of the Fund, at the period end Mar'24 was ~70.74% exposing the Fund to high level of 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 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 201bln at end-Mar'24.