The Pakistan Credit Rating Agency Limited
22-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 Islamic Cash Fund
| Rating Type | Stability Rating | |
|
Current (22-Apr-25 ) |
Previous (30-Aug-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
AL Habib Islamic Cash Fund ("AHICF" or the "Fund") is an open-ended low-risk profile Fund. The objective of the Fund is to provide its unit holders optimum returns from a shariah-compliant portfolio of low-risk and short-duration assets while being highly liquid. The assigned rating reflects the Fund's low credit risk profile emanating from the Fund's investment policy to invest in strong credit quality investment avenues with sound liquidity. From the point of view of asset allocation, the Fund had invested ~93.27% in Cash, ~5.81% in GoP Ijarah Sukuk, and ~0.92% in others as of December 2024. In terms of credit quality, the Fund had invested ~91% in AA-rated avenues, ~8.27% in AAA-rated avenues, and ~0.92% in other rated avenues. The Weighted Average Maturity (WAM) of the Fund stood at 20 days at end-December 2024, while the duration stood at 8 days. The Fund's unit holding pattern is highly concentrated, with the top 10 investors representing ~75.20% of the net assets, which exposes the Fund to a high level of redemption pressure, though this 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 Dec'24, the total AUMs of AHAML stood at PKR 300bln.