PACRA Maintains Stability Rating of AL Habib Income Fund

AL Habib Income Fund (“AHIF” or “the Fund”) is a medium risk profile fund. The investment objective of the Fund and its Allocation Plan(s) 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. As of Dec’25, the Fund’s AUM stood at ~PKR 25.237bln, slightly up from PKR 24.878bln at the time of Jun’25, reflecting modest growth in fund size while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~42.92% in T-Bills, followed by ~31.22% in Cash holdings and ~19.72% in PIBs, while ~3.95% was placed in TDRs and ~0.23% in GOP Ijarah Sukuk, with the remaining ~1.96% allocated to other instruments. The allocation reflects a balanced mix of sovereign exposure and liquidity to support stable returns. From a credit quality perspective, ~62.87% of the portfolio was invested in Government Securities, ~29.10% in AAA rated avenues, and ~6.07% in A+ rated instruments, with the remaining ~1.96% allocated to other categories. This composition indicates a strong credit quality profile with a significant tilt toward sovereign and high-grade instruments. At end-Dec’25, the Fund’s duration stood at 62 days, indicating moderate sensitivity to interest rate movements. Meanwhile, the WAM was recorded at 161 days, reflecting a balanced maturity profile. The unit holding pattern remained moderately concentrated, with approximately 52.48% of units held by the top 10 investors. In terms of performance, the Fund reported a 12-month trailing return of 10.96% as of Dec’25, which remained slightly below the benchmark return of 11.08%, indicating marginal underperformance 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.