PACRA Assigns Initial Stability Rating to AL Habib Islamic Money Market Fund

Al Habib Islamic Money Market Fund (“AHIMMF” or “the Fund”) is categorized under a low-risk profile, with the objective of providing unit holders optimum returns from a Shariah compliant portfolio of low-risk and short-duration assets while maintaining high liquidity. The Fund commenced operations on March 5, 2026, and has recorded sustained growth in net assets since inception. As of Sep’26, Assets Under Management (AUM) stood at PKR 17,057mln, compared to PKR 1,221mln at seed stage in Mar’26, an increase of approximately 14x over a short span, indicating rising investor subscriptions into the Fund’s Shariah compliant money market mandate. In terms of asset allocation, 73.47% of the portfolio was deployed in GoP Ijarah Sukuks and 25.12% in cash, with the balance in other eligible instruments, reflecting a Shariah compliant portfolio anchored in sovereign Islamic securities, with the cash holding supporting liquidity management. From a credit quality perspective, 98.59% of the Fund’s assets were placed in Government Securities and AAA rated instruments as of Sep’26, with the balance in other exposures. The overall credit risk profile is assessed at the upper end of the quality spectrum. Management has committed to maintaining credit quality within the highest investment grade at all times, which supports continued adherence to the assigned rating criteria. The Fund’s Weighted Average Maturity (WAM) stood at 24 days as of Sep’26, indicating minimal duration-based interest rate sensitivity and a comfortable liquidity profile. Management has also committed to capping WAM at 45 days, against the regulatory ceiling of 90 days, reflecting a conservative approach to duration management with headroom beyond the minimum regulatory requirement. In terms of performance, the Fund has outperformed its benchmark since inception, posting a year-to-date return of 10.81% against the benchmark return of 10.01% as of Sep’26, an excess return of approximately 80 basis points. This outperformance is a favorable outcome for a newly launched Shariah compliant money market fund, reflecting adequate capacity to generate competitive risk-adjusted returns while adhering to its conservative investment mandate over the review period.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the rating.

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 Sep'26, the total AUMs of AHAML stood at PKR 311.351bln.