PACRA Maintains Stability Rating of Alhamra Islamic Income Fund

Alhamra Islamic Income Fund (“ALHIIF” or “the Fund”) is categorized under a medium-risk profile, with the objective of generating risk-adjusted returns through investments in short, medium, and long-term Shariah-compliant fixed income instruments. The Fund seeks to balance income generation with capital preservation while strictly adhering to Shariah investment principles. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at PKR 34,318mln, compared to PKR 42,777mln as of Jun'25 (last review), reflecting a contraction in the Fund’s size during the review period. In terms of asset allocation, the portfolio remained largely concentrated in Government of Pakistan (GoP) Ijarah Sukuks (~53%), followed by ~30% in cash and ~10% in Shariah-compliant placements, with the remaining invested in other eligible instruments. This allocation reflects a prudent balance between sovereign exposure and liquidity management. From a credit quality perspective, approximately ~67% of the Fund’s assets were invested in Government/AAA-rated instruments, ~10% in AA-rated avenues, and ~16% in A+ rated securities, with the remaining in other categories. This composition reflects a sound credit profile while maintaining selective exposure to instruments that may offer incremental yield within the Shariah-compliant universe. The Fund’s Weighted Average Maturity (WAM) stood at 548 days as of Dec’25, indicating moderate sensitivity to interest rate movements consistent with the Fund’s income-oriented investment strategy. The unit holding pattern indicates moderate investor concentration, with the top 10 investors accounting for ~32% of the Fund’s AUM, suggesting manageable redemption risk and a reasonably diversified investor base. In terms of performance, the Fund reported an annualized year-to-date return of 9.80% as of Dec’25, compared to the benchmark return of 9.39%, indicating performance slightly above the benchmark during the review period.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the rating.

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.