PACRA Maintains Stability Rating of Alhamra Islamic Money Market Fund | Assigns ‘Rating Watch’

Alhamra Islamic Money Market Fund ("ALHIMMF" or "The Fund") maintains a low-risk investment profile, aligned with its stated objective of providing a reasonable rate of return while ensuring maximum possible capital preservation through investment in liquid Shariah-compliant money market instruments. To achieve this objective, the Fund primarily deploys assets in Shariah-compliant avenues including Islamic bank placements, government-backed exposures, and other high-quality short-term money market securities. As of end-Dec’25, the Fund’s asset allocation remained largely concentrated in cash placements (~76%), followed by short-term Sukuks (15%), GoP Ijarah Sukuks (8%), with the remainder in other avenues. From a credit quality perspective, the portfolio was skewed towards AA rated instruments (75%), while A1+ rated exposures constituted 15%, and government securities/AAA rated instruments represented 9.6% of total assets. The Fund’s Weighted Average Maturity (WAM) stood at 29 days, indicating limited exposure to interest rate risk and supporting the Fund’s liquidity profile. This short maturity structure also moderates credit risk, consistent with the Fund’s low-risk positioning. On the liability side, investor concentration remained manageable, with the top ten investors representing ~59% of total units. The presence of ~20% allocation from provident funds provides a relatively stable investor base, partially mitigating redemption pressure risk. However, the rating remains under downward pressure, and the Fund is being placed on Rating Watch, primarily due to non-compliance with the assigned rating criteria.
Going forward, portfolio rebalancing in line with the assigned rating benchmarks remains critical. Any material change in asset allocation affecting credit quality, liquidity, or interest rate exposure will remain a key rating consideration.

About the Entity
MCB Investment Management Limited (MCBIM) is a public listed company regulated by the Securities and Exchange Commission of Pakistan (SECP). It holds licenses for asset management, investment advisory, and pension fund management, catering to both Conventional and Shariah investment solutions. As of Dec 2025, MCBIM manages a diversified portfolio, including 26 Open-End Mutual Funds and 4 Voluntary Pension Schemes, while also maintaining a leading position in Separately Managed Accounts (SMA) and investment advisory services. MCBIM’s major shareholders include MCB Bank Limited (~81.42%), Adamjee Insurance Company Limited (~7.59%), and the general public (~9.28%). Mr. Khawaja Khalil Shah serves as the Chief Executive Officer of the company. The Board comprises a balanced composition of 4 Non-Executive Directors and 3 Independent Directors, ensuring strong governance, objective decision-making, and alignment with regulatory best practices. The Company’s assets under management (AUM) have grown significantly, reaching approximately PKR 429 Billion as of December 2025, reflecting its strong market presence and consistent growth in Pakistan’s asset management industry.