The Pakistan Credit Rating Agency Limited
23-Apr-25
Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of AL Habib Income Fund
| Rating Type | Stability Rating | |
|
Current (23-Apr-25 ) |
Previous (30-Aug-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
AL Habib Income Fund ("AHIF" or the "Fund") is a low-risk 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 debt instruments while taking into account liquidity considerations. The Fund's moderate credit risk profile stems from its investment policy focusing on instruments with sound liquidity. As of end-December 2024, the Fund's asset allocation comprised ~48% in PIBs, ~45.9% in T-Bills, ~0.71% in Cash, ~0.32% in GoP Ijarah Sukuk, ~0.28% in TFC, ~0.14% in Sukuk, and ~4.61% in other rated avenues. In terms of credit quality, ~94% was invested in AAA-rated instruments and ~6% in other rated avenues. The Fund maintained a duration of 137 days and weighted average maturity (WAM) of 302 days at end-December 2024, reflecting limited interest rate risk but moderate credit risk, which remains manageable given its predominant investments in government securities. The Fund's unit holding pattern showed ~49% concentration among its top 10 investors, with redemption risk mitigated through related-party investments.
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 Dec'24, the total AUMs of AHAML stood at PKR 300bln.