The Pakistan Credit Rating Agency Limited
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Wajeeha Asghar

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PACRA Assigns Initial Fund Ratings to AL Habib Islamic Savings Fund

Rating Type Stability Rating
(30-Dec-22 )
Action Initial
Long Term AA(f)
Short Term -
Outlook 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.. The assigned rating reflects the Fund's moderate credit risk profile emanating from Fund's Investment policy. The Fund had invested ~53.2% in banks majorly in AAA rated, ~40.32% in GoP Ijarah Sukuks whereas ~4.25% in TDRs and ~1.21% in others at the end Nov'22. The duration and the WAM of the Fund stood on higher side at 962-day at the end Nov'22, exposing high interest rate and credit risk. However, the credit risk is at manageable level due to investment in Govt Securities. The unit holding pattern of top ten investor concentration is ~94.43% at the end Nov'22. Going Forward the Fund intend to reduce exposure in longer maturity securities while reducing its market risk and remain invested in AA and above rated avenues. Out of which at least 25% would remain invested in Govt Securities/AAA.
Going forward, the Fund ensures to diversify their investment in AA and above 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 Nov'22, the total net assets of AHAML stood at PKR 52bln.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.