The Pakistan Credit Rating Agency Limited
27-Jun-23
Analyst
Wajeeha Asghar
wajeeha.asghar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA
PACRA Maintains Stability Rating of AL Habib Islamic Savings Fund
| Rating Type | Stability Rating | |
|
Current (27-Jun-23 ) |
Previous (30-Dec-22 ) |
|
| Action | Maintain | Initial |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
AL Habib Islamic Savings Fund (or the "Fund") is an open ended medium risk profile Fund. The objective of the Fund is to provide competitive risk adjusted returns to its investors by investing in a diversified portfolio of long, medium and short term Shariah Compliant debt instruments while taking into account liquidity considerations. As per the investment policy, the Fund need to maintain less than equals to 90 days maturity with exposure of 25%-100% in Govt securities. The assigned rating reflects the Fund's moderate credit risk profile emanating from Fund's Investment policy. The Fund had allocated ~8.56% in TDRs rated AAA, ~0.7% in GoP Ijarah Sukuks, ~89.44% in cash of which ~45.90% in double AA rated banks while remaining ~39.67% in single A+ rated banks. And ~1.34% are placed in others avenues at the end Mar’23. The duration of the Fund stood at 3 days at the end Mar’23, limiting the exposure to interest rate risk. However, the WAM of the Fund stood at 15 days at the end Mar’23, limiting the exposure to credit risk. The unit holding pattern of the Fund was ~93.63% at the end Mar’23, representing top 10 investors concentration.
Going forward, the Fund intend to diversify their investment in Govt/AAA rated avenues. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.
About
the Entity
AL Habib Asset Management Limited ("AHAML") incorporated in September 2005 as an unlisted public company, is one of the growing Asset Management and Investment Advisory Company in Pakistan. The company is licensed by the Securities and Exchange Commission of Pakistan (SECP) to carry out these services under the Non-Banking Finance Companies Regulations. The Company is a wholly-owned subsidiary of Bank AL Habib Limited.
The Board of Directors comprises six members. The CEO, Mr. Kashif Rafi, has vast experience expanding over 21 years in the field of Investments and Fund Management. The Company’s diverse product slate includes 5 conventional funds, 4 shariah-compliant funds, 1 shariah compliant pension fund and 1 conventional pension fund. As of Mar'23, the total net assets of AHAML stood at PKR 53.5bln