Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Alhamra Wada Fund, a Shariah-compliant investment vehicle structured as a perpetual fund. The Fund, characterized by its moderate risk profile, operates through specific Allocation Plans which are designed to meet targeted returns in line with Islamic finance principles.

The investment strategy of the Alhamra Wada Fund focuses on capital preservation and liquidity optimization while adhering strictly to Shariah principles. As of March 2025, the Fund's portfolio consists of three active Allocation Plans: Alhamra Wada Plan IX, XVII, and XVIII. These plans aim to achieve their target return profiles by investing in authorized, Shariah-compliant short-term fixed income instruments.

The Fund's diversified asset mix includes a significant portion of liquidity-focused investments. Approximately 47.4% of the portfolio is in cash deposits, 33% in GOP Ijarah Sukuks, and 19% in short-term Shariah-compliant placements. This structure underscores the Fund's commitment to maintaining a strong credit discipline with a high concentration in high-grade exposures.

The Fund's portfolio allocation indicates a preference for credit quality and risk mitigation, with roughly 47% of assets allocated to AA-rated, 43% to AAA-rated or sovereign-backed instruments, and 9% to AA+ rated issuers. The Weighted Average Maturity (WAM) of the Fund stood at 25 days as of March 2025, highlighting its low interest rate sensitivity and strategic positioning for short-term liquidity management.

PACRA's decision to maintain the stability rating reflects the Fund's effective approach to navigating market dynamics while fulfilling its return commitments. Future changes in investment policy or rating criteria could influence the Fund's rating.