Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
PACRA Maintains Stability Rating of BMA Islamic Noor Cash Fund
| Rating Type | Stability Rating | |
|
Current (05-Nov-26 ) |
Previous (27-Apr-26 ) |
|
| Action | Maintain | Initial |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
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. As of Sep’26, the Fund’s Assets Under Management (AUM) stood at ~PKR 9.67bln, up from PKR 8.07bln as of May’26, reflecting growth in fund size during the period. In terms of asset allocation, approximately 44.43% of the portfolio was invested in Musharka, ~29.9% in Ijarah Sukuk, ~14.54% in Cash, ~8.01% in Corporate Sukuk, and ~3.12% in other assets including receivables. The allocation reflects a diversified Shariah-compliant portfolio, with exposure to Islamic financing instruments complemented by cash holdings to support liquidity. From a credit quality perspective, ~60.9% of the assets were invested in AAA-rated avenues, ~30.9% in Government Securities, and ~8.3% in A1-rated avenues, indicating a strong credit quality profile with significant exposure to high-quality rated instruments and sovereign securities. At end-Sep’26, the Fund’s WAM stood at 43 days, while duration stood at 44 days, reflecting relatively low exposure to maturity and interest rate risk. However, the unit holding pattern remained highly concentrated, with the top 10 investors accounting for ~92% of total holdings, indicating elevated redemption pressure. In terms of performance, the Fund delivered a return of 10.5% as of Sep’26, compared to the benchmark return of 9.7% and peer average return of 10.3%, indicating outperformance relative to both its benchmark and comparable funds.
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. Haris Anwar assumed charge as Chief Executive Officer of the company. 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.