Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced that it is maintaining the stability rating of the BMA Islamic Noor Cash Fund, a low-risk profile fund focused on providing Shariah-compliant returns. The fund has demonstrated growth in its assets under management, increasing from PKR 8.07 billion in May to PKR 9.67 billion in September.

According to PACRA, the fund's investment strategy involves a diversified portfolio with a significant portion allocated to Shariah-compliant instruments. The fund's assets include 44.43% in Musharka, 29.9% in Ijarah Sukuk, and 14.54% in cash, among others. The fund's credit quality is strong, with 60.9% of its assets in AAA-rated avenues and 30.9% in government securities. However, the concentration of holdings remains high, with the top 10 investors holding 92% of the total assets, which could pose redemption pressure.

The fund reported a return of 10.5% as of the end of September, surpassing its benchmark return of 9.7% and the peer average return of 10.3%. The fund plans to continue operating within broad money market guidelines, balancing yield optimization with risk management.