PACRA Maintains Stability Rating of AL Habib Islamic Cash Fund

AL Habib Islamic Cash Fund (“AHICF” or “the Fund”) is a very low risk profile fund. The investment 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 maintaining high liquidity. As of Dec ’25, the Fund’s AUM stood at ~PKR 26.527bln, down from PKR 30.201bln 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 ~50.44% in Cash holdings, followed by ~28.58% in placements with Banks and ~19.90% in GOP Ijarah Sukuk, while the remaining ~1.08% was allocated to other instruments. The allocation reflects a highly liquid investment strategy with a balanced mix of bank placements and sovereign exposure to support stability and short-term return generation. From a credit quality perspective, ~50.09% of the portfolio was invested in AAA rated avenues, ~19.90% in Government Securities, ~13.87% in AA+ rated instruments, and ~15.06% in AA rated avenues, with the remaining ~1.08% 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 51 days, limiting sensitivity to interest rate movements and supporting liquidity management. Meanwhile, the WAM was recorded at 52 days, reflecting a short-tenor investment strategy. The unit holding pattern remained moderately concentrated, with approximately ~58% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 10.44% as of Dec’25, which remained above the benchmark return of 9.95%, indicating outperformance relative to its benchmark.
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.