PACRA Maintains Stability Rating of AL Habib Islamic Income Fund

AL Habib Islamic Income Fund (“AHIIF” or “the Fund”) is a medium risk profile fund. The primary 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. As of Dec’25, the Fund’s AUM stood at ~PKR 15.036bln, down from PKR 19.234bln at the time of Jun’25, reflecting net outflows during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~53.61% in Cash holdings, followed by ~42.15% in GOP Ijarah Sukuk and ~0.99% in Corporate Sukuk, while the remaining ~3.25% was allocated to other instruments. The allocation reflects a highly liquid strategy with significant exposure to sovereign instruments to support capital preservation and stability. From a credit quality perspective, ~42.15% of the portfolio was invested in Government Securities, ~36.43% in AAA rated avenues, ~16.21% in AA-, ~0.98% in AA, and ~0.98% in A rated instruments, with the remaining ~3.25% allocated to other categories. This composition indicates a strong credit quality profile with a dominant allocation to high-grade instruments. At end-Dec’25, the Fund’s duration stood at 245 days, indicating relatively higher sensitivity to interest rate movements. Meanwhile, the WAM was recorded at 483 days, reflecting exposure to longer-tenor instruments. The unit holding pattern remained moderately concentrated, with approximately 62.73% of units held by the top 10 investors, comprising both corporate and individual investors. In terms of performance, the Fund reported an annualized 12-month trailing return of 10.11% as of Dec’25, which remained slightly above the benchmark return of 10.06%, indicating marginal outperformance.
Going forward, any material changes, in the investment policy, and/ or compliance with rating criteria for the assigned rating would have 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 8 conventional funds and 5 Shariah-compliant in open-ended schemes. As of Dec '25, the total AUMs of AHAML stood at PKR 332.63bln.