PACRA Maintains the Stability Rating of First Habib Islamic Income Fund.
|Rating Type||Stability Rating|
At end‐Jun’19, majority of the fund's assets were invested as cash (53%) and Sukuks (42%). This exposure is with banks rated 'A+' (53%) and Sukuks rated 'A' and
'AA'. The fund has a highly concentrated unit holding pattern, with top 10 investors representing 89% of the fund size at end‐Jun’19.
Going forward, the management intends to maintain funds allocation towards cash, while the remaining assets would be invested in good quality corporate debt
instruments. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.
HAML, incorporated in September 2005 as an unlisted public limited company, is licensed to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The company is a part of Habib group, the oldest and a distinguished name in Pakistan’s banking circle, with interest in insurance, sugar, textile, auto, food and trade sectors. Habib family and associates, a distinguished name in Pakistan, owns around 70% of shareholding in the company, while Bank AL Habib being the single largest shareholder holds 30% stake in the company.
HAML’s BoD consists of seven members, including the CEO. The CEO, Mr. Imran Azim, is an MBA and has profound experience in the mutual fund industry. The company is currently managing six open-end funds with assets under management of ~PKR 3.3 bln at end Jun-19.