News Updates

PACRA Maintains Stability Rating of Alhamra Daily Dividend Fund

Lahore, March 11, 2023 (PPI-OT): Alhamra Daily Dividend Fund (or the “Fund) is a medium risk-profile fund. The assigned rating reflects the adequate strength of the Fund’s credit and interest rate risk profile. Furthermore, considerable holding of cash and bank balances reinforce the liquidity profile. At the end-Dec’22, 65% of the portfolio was invested in Cash at Banks, 21.4% in Shariah Compliant Deposits and Placements, 10.4% in Sukuk rated AA and remaining 3.2% was invested in other receivables.

At the end-Dec’22, the weighted average maturity of the Fund was 41 days and duration of 40 days representing low credit rate risks and interest rate risks respectively. The unit holding pattern of the Fund is moderately concentrated with the top ten investors representing 29.6% of the Fund’s assets, representing low redemption pressures.

Going forward, the Fund may maintain its asset allocation towards banks depending on economic and market expectations and the Fund may diversify the allocation among different shariah compliant instruments. Material changes in the Fund’s asset allocation strategy, impacting its 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

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