LAHORE: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Alhamra Government Securities Fund, a medium-risk investment vehicle focused on Shariah-compliant government securities. The fund seeks to maximize returns through investments in Islamic banks and licensed Islamic banking windows of conventional banks. As of September 26, the fund's assets under management (AUM) reached PKR 896 million, a significant increase from PKR 442 million in March, reflecting growing investor interest.

According to PACRA, the fund's asset allocation includes approximately 53% in GoP Ijarah Sukuks, 45% in cash, and around 2% in other receivables, indicating a structured portfolio anchored in sovereign-backed Islamic securities. The credit quality of the fund remains robust, with 54% of its assets in government securities and AAA-rated instruments, 42% in AA+ rated instruments, 2% in AA-rated avenues, and 2% in unrated exposures. The fund's weighted average maturity stands at 766 days, driven by its allocation to longer-tenor GoP Ijarah Sukuks, consistent with its medium-risk sovereign income mandate.

The unit holding pattern shows moderate concentration, with the top 10 investors holding approximately 66% of the fund's total assets. This concentration exposes the fund to moderate redemption pressure; however, its cash allocation of 45% and the liquidity of GoP Ijarah Sukuks provide reassurance regarding its ability to meet potential redemptions. The fund delivered a one-year return of 7.18%, underperforming its benchmark by 277 basis points, attributed to mark-to-market dynamics on longer-tenor holdings in the current interest rate environment. Future changes in investment policy or compliance could impact the fund's rating.