Lahore, September 10, 2021 (PPI-OT):Alhamra Islamic Money Market Fund (or the ‘Fund’) is low risk-profile fund. The Fund’s rating reflects the Fund’s strong credit and interest rate risk profile emanating from its investment strategy. At end Jun’21, the Fund had placed ~46% of its assets with commercial banks rated ‘AA’ and ‘AAA’. The Fund had placed 42% of its net assets in Shariah Compliant bank placements and deposits. It had also invested ~8% of its funds in Shariah Compliant commercial papers. The weighted average maturity of the Fund was 35 days at end_Jun’21, which is in compliance with the investment policy.

The duration of the fund remained within 45 days as at end-Jun’21. The Benchmark return of Fund will be the 3-month average deposit rate of 3 ‘AA’ rated Islamic banks/Islamic windows of conventional banks. The Fund outperformed the benchmark during FY21 by a comfortable margin of 334 basis points. At end-Jun’21, the fund’s unit holding pattern was highly concentrated with top ten investors representing ~91% of the net assets; however, the highly liquid nature of Fund’s assets is able to cope up the redemption pressure.

Going forward, the Fund will invest in accordance with its authorized investment policy and maintain its exposure in Shariah Compliant instruments, however the allocations will be diversified appropriately. Material changes in the Fund’s asset allocation strategy, impacting it’s 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