PACRA Assigns Stability Rating to BMA Islamic Noor Cash Fund

BMA Islamic Noor Cash Fund ("BMA-INCF" or "the Fund") is a low-risk profile Fund. The primary objective of Fund is to provide competitive Shariah compliant returns while maintaining liquidity through investments in Shariah-compliant money market and short-term Islamic income instruments. The Fund’s investment strategy is centered on high-quality Islamic avenues, including Government Ijarah Sukuk (GIS), Shariah-compliant bank placements, corporate Sukuk, and short-term Islamic instruments. The credit quality is anchored in a prudent allocation across top-tier instruments, with targeted exposure to GIS/ AAA-rated instruments (~38%), AA+ rated instruments (~27%), AA rated instruments (~15%), and A1-rated instruments (~20%), reflecting a strong emphasis on creditworthiness while maintaining return optimization. Liquidity will be supported through a balanced mix of short-tenor placements and cash holdings with highly rated Islamic banking institutions, with WAM expected to remain within a strict cap of 90 days (current indicative WAM ~88.76 days). The Fund will adhere to a disciplined diversification framework, limiting exposure to a single bank or counterparty to 15% of net assets, thereby mitigating concentration risk. The targeted investor base includes corporates, retirement funds (provident, pension, and gratuity), insurance companies, private funds, AOPs, high net worth individuals, and retail investors, supporting the development of a stable and diversified liability profile. This rating reflects the Fund’s conservative risk appetite and strong commitment to strict Shariah compliance. While significant allocations to high-quality bank placements and sovereign instruments are expected to strengthen liquidity, the effectiveness of liquidity management will remain contingent upon investor behavior and evolving market dynamics. The Offering Document has been reviewed and approved by the SECP. The tentative launch date for the Fund is 29th April, 2026.
Going forward, the Fund intends to operate within broad money market stipulations, maintaining a balance between yield optimization and disciplined management of associated risks.

About the Entity
BMA Investment Advisors Limited was incorporated in April 2005 and obtained its licenses for investment advisory and asset management in April and July 2005, respectively. The Company is a wholly owned subsidiary of BMA Capital Management Limited. Mr. Mian Qasim Saeed Ahmed presently serves as the President of the Company, whereas Mr. Haris Anwar assumed charge as Chief Executive Officer in June 2025. The Company has a three-member board, two of whom are non-executive and one is independent. Mr. Salim Khan has been serving as the Chairman of the Board since October 2017.