The Pakistan Credit Rating Agency Limited
22-Oct-25
Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Correlation Between Long-term & Short-term Rating Scales | Apr-25
- Methodology | Rating Modifiers | Apr-25
- Assessment Framework | Stability Rating | Jul-25
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 Income Fund
| Rating Type | Stability Rating | |
|
Current (22-Oct-25 ) |
Previous (22-Apr-25 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
AL Habib Islamic Income Fund ('AHIIF' or the 'Fund') is a low risk profile Fund. The objective of AHIIF 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 the Fund's Investment policy to invest in avenues with sound liquidity. In terms of asset allocation the Fund had allocated ~49.68% in Cash, ~34.48% in GoP Ijarah Sukuk, ~5.13% as Placement with Banks, ~0.77% in Corporate Sukuk, and ~9.95% in others at the end-Jun'25. In perspective of credit quality the Fund had invested ~34.48% in Govt. Securities, ~24.85% in AA+ rated avenues, ~17.09% in AA, ~12.79% in AAA, ~0.76% in A, ~0.06 in A+, ~0.01% in AA-, and ~9.95% in other rated avenues as at Jun'25. The WAM of the Fund stood at 238 days at the end Jun’25, exposing it to medium credit risk. The Duration of the Fund stood at 179 days at the end-Jun'25. The unit holding pattern of the Fund stood at ~62.36% representing top 10 investors concentration, exposing to very high redemption risk. The redemption risk is managed through related party investment.
Going forward, any material changes in the investment policy or devised rating criteria for the assigned rating would have an impact on the ratings.
About
the Entity
AL Habib Asset Management Limited ('AHAML') incorporated in September 2005 as an unlisted public company, is the fastest-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 22 years in the field of Investments and Fund Management. The Company’s diverse product slate includes 7 conventional funds and 5 Shariah-compliant in open-ended schemes. As of Jun'25, the total AUMs of AHAML stood at PKR 253bln.