Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has assigned an initial stability rating to the Alhamra Islamic Cash Fund, highlighting its low-risk profile and commitment to Shariah-compliant investments. The Fund, launched on September 7, 2026, reported assets of PKR 119 million and focuses on high liquidity through investments in money market instruments that adhere to Islamic finance principles.

According to The Pakistan Credit Rating Agency Limited, the Alhamra Islamic Cash Fund maintains a portfolio primarily consisting of cash placements, with 97.82% of its assets in AA+ rated instruments. This strategy positions the Fund at the upper end of the investment-grade spectrum, minimizing exposure to default risks and credit spread fluctuations. The Fund's weighted average maturity stands at one day, ensuring high liquidity and minimal interest rate sensitivity.

The Fund's current unitholding pattern is heavily concentrated, with the top 10 investors holding approximately 99% of the total units. An associated company accounts for 84% of these assets, providing a stable foundation for the investor base. Although the concentration level is a key area of focus, the Fund's liquid asset mix and short duration allow it to manage redemption requests effectively. As the Fund grows, it is expected to diversify its investor base and unitholding pattern.

With no established track record, the Fund's performance will be assessed in future reviews as it stabilizes. Any significant changes in the Fund's investment policy or compliance with the rating criteria could affect its assigned rating.