Alhamra Islamic Money Market Fund Maintains Strong Credit Profile

Strategic Insights -

The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the rating of Alhamra Islamic Money Market Fund, categorizing it as a low-risk profile fund. The Fund's strong credit and interest rate risk profiles are attributed to its investment strategy, which includes placing 89.4% of its assets with commercial banks rated 'AA' and 'AAA'. The Fund's liquidity profile is also notable, with a top ten investors concentration of around 94% and a weighted average maturity of 11 days.

Key Takeaways:

  • The Alhamra Islamic Money Market Fund has a strong credit profile, with 89.4% of its assets placed with commercial banks rated 'AA' and 'AAA'.
  • The Fund's interest rate risk profile is also well-managed, with a weighted average maturity of 11 days and a duration of 12 days.
  • The top ten investors concentration stands at around 94%, representing a high level of redemption pressure.
  • The Fund maintains its exposure to Shariah Compliant instruments, with 42% of its net assets placed in Shariah Compliant bank placements and deposits.
  • The Fund's investment policy allows for diversification of its asset allocation, indicating its adaptability to market conditions.
  • Material changes in the Fund's asset allocation strategy could impact its credit quality and/or exposure to interest rate risk, affecting its rating.
  • The Fund's analyst, Hammad Rashid, is available for further information at +92-42-5869504-6 or hammad.rashid@pacra.com.

Statistics:

  • 89.4% of Alhamra Islamic Money Market Fund's assets are placed with commercial banks rated 'AA' and 'AAA'.
  • The Fund's top ten investors concentration is around 94%.
  • The weighted average maturity of the Fund is 11 days.
  • The duration of the Fund is 12 days.
  • 42% of the Fund's net assets are placed in Shariah Compliant bank placements and deposits.

Sources:

  • The Pakistan Credit Rating Agency Limited (PACRA)
  • Awami Complex, FB1, Usman Block New Garden Town, Lahore, Pakistan
  • Tel: +92-42-5869504-6
  • Fax: +92-42-5830425
  • Email: hammad.rashid@pacra.com
  • Website: www.pacra.com