PACRA Maintains Stability Rating of AL Habib Islamic Savings Fund

AL Habib Islamic Savings Fund ('AHISAVF' 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 the Fund's investment policy to invest in avenues with sound liquidity. From the point of view of asset allocation, the Fund had invested ~60% in Cash and ~38% in GoP Ijarah Sukuk by end-December 2024. In terms of credit quality, the Fund had invested ~64% in AAA-rated avenues and ~34.21% in AA-rated avenues at end-December 2024. The WAM (weighted average maturity) of the Fund stood at 471 days as of December 2024, exposing the Fund to medium credit risk, though this remains manageable as the majority of investments are in government securities (AAA). The duration of the Fund stood at 160 days, which creates medium credit risk but remains feasible given the major investments are in government securities (AAA). The Fund's unit holding pattern is highly concentrated, with the top 10 investors representing ~53% of the net assets, exposing the Fund to a high level of redemption pressure.
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.