Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of the Alhamra Islamic Money Market Fund, underscoring its position as a low-risk, Shariah-compliant liquidity solution. The Fund is designed to offer capital preservation and competitive returns by investing in high-quality Islamic money market instruments.

As of December 2024, the Fund reported Assets Under Management (AUM) totaling PKR 6.2 billion, highlighting its significant role in Pakistan's Islamic liquidity market. The Fund's asset allocation strategy includes a 46% investment in Banks and Development Finance Institutions (DFIs), 30% in Government of Pakistan Ijara Sukuks, and 15% in cash, with the remainder invested in other approved Islamic instruments.

From a credit quality perspective, 54% of the Fund's assets are allocated to Government Securities or AAA-rated instruments, 23% to AA+ rated avenues, and 14% to AA-rated securities. This distribution reflects the Fund's commitment to maintaining high credit quality and liquidity.

The Fund's Weighted Average Maturity (WAM) stands at 71 days, indicating moderate sensitivity to short-term rate movements. This duration profile aligns with the Fund's liquidity-focused mandate, balancing risk and return while adhering to strict Shariah compliance.

Looking ahead, any significant changes in investment policy or compliance with the current rating criteria could impact the Fund's rating. The Fund's conservative investment approach and rigorous liquidity management continue to make it an attractive option for Islamic institutional and corporate investors.