Islamabad: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Alhamra Wada Fund (ALH WF), a low-risk profile fund focused on Shariah-compliant fixed-income securities.

According to The Pakistan Credit Rating Agency Limited announcement issued on 04 July 2024, the Alhamra Wada Fund, managed by MCBIM, operates under a structure where its units are not directly offered to investors but through various allocation plans, which include Alhamra Wada Plan VII through XII. These plans predominantly invest in government securities and other approved financial instruments to ensure compliance with Islamic finance principles and to secure promised returns for investors at plan maturity. As of the end of March 2024, the fund's assets under management were PKR 6,904 million. Notably, 89% of the fund's investments were in AAA-rated Ijarah Sukuk, with an additional 4% held in AA-rated avenues, reflecting strong credit quality and a focused investment strategy. The weighted average maturity of the fund was 93 days, and its duration was 97 days, indicating moderate exposure to both credit and interest rate risks. However, a high concentration of investments among the top ten investors, accounting for about 70.74% of the fund, suggests significant redemption pressure.