Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed its stability rating for the Alfalah Islamic Rozana Amdani Fund, a Shariah-compliant money market fund designed to offer investors daily income distribution while preserving capital. The Fund, characterized by its ultra-short duration and adherence to Islamic principles, has been recognized for its strategic asset allocation and credit quality.

As of December 2024, the Fund reported Assets Under Management (AUM) totaling PKR 15.07 billion, underscoring its status as one of Pakistan's largest Islamic daily dividend funds. The asset allocation strategy reflects a prudent approach, with 69% of assets invested in banks and Development Finance Institutions (DFIs), 25% in Government Backed Securities, and 3% in Term Finance Certificates/Sukuks.

From a credit quality perspective, the Fund has allocated 66% of its assets to Government Securities and AAA-rated instruments. This is complemented by 22% in AA+/A1+ rated and 10% in AA/A1 rated avenues, ensuring that 98% of the portfolio is invested in A1 or better-rated instruments. This concentration provides substantial protection against credit risk while maintaining full Shariah compliance.

The Fund's Weighted Average Maturity (WAM) of 50 days, as of December 2024, positions it among the most conservative in the Islamic money market category. This ultra-short duration profile offers strong insulation against interest rate fluctuations, enabling the Fund to sustain daily dividend distributions.

The stability rating is contingent upon the Fund's adherence to its investment policy and the rating criteria. Any significant changes in these areas could impact the current rating.