Lahore, January 02, 2023 (PPI-OT): Alhamra Wada Plan (the ‘Fund’) is a very low risk-profile open ended fund. The duration of the Fund is perpetual; however, allocation plan(s) launched by the Management Company (MCBAH) under this Fund may be perpetual or may have fixed maturity. The objective of the Fund is to provide an attractive promised return at maturity of the Allocation Plans under the Fund, by investing in shariah compliant fixed income securities. Since the Fund is not directly offering its units to the investor rather offering shall only be made through allocation Plans launched from time to time under the umbrella of this Fund.
Currently, Alhamra Wada Plan V is launched under the umbrella of the Fund. The plan, in line with its Investment Objectives, will invest in the authorized investment avenues. The Management Company shall ensure the promised return is delivered to the investors. The promised return shall be valid only for the investors who remain invested till the maturity of the pertinent plan. Investment avenues for the plans are government securities, cash in banks, money market placements, deposits, certificate of deposits, certificate of musharakas and term deposit receipts.
Alhamra Wada Plan V:
The Fund’s Plan V is in compliance with the authorized investment policy. At Dec’22, the Plan had invested 99.7% of its assets with a shariah compliant commercial bank rated ‘AA’ (double A). The weighted average maturity and the duration of the Fund stood at 1 day exposing the Plan to very low credit and interest rate risks. The top ten investor’s concentration remained a 100% representing a high level of redemption pressure. Since the plan is fixed maturity plan hence, the redemption pressure is on lower side.
Going forward, the Fund will invest in accordance with its authorized investment policy and maintain its exposure in Shariah Compliant instruments, however the allocations need to be diversified appropriately. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
For more information, contact:
Analyst,
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