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 AHICF is to provide its unit-holders optimum returns from a Shariah compliant portfolio of low risk and short duration assets while being highly liquid. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at ~PKR 34.85bln, up from PKR 26.53bln as of Dec’25, reflecting healthy growth in fund size and strengthening of its position within the money market fund category. In terms of asset allocation, approximately 64.33% of the portfolio was invested in Cash, ~35.14% in GoP Ijarah Sukuk, and the remaining ~0.53% in other instruments. The allocation reflects a highly liquid strategy with predominant exposure to cash and sovereign-backed Islamic securities. From a credit quality perspective, ~64.22% of the assets were invested in AAA rated avenues, ~35.14% in Government Securities, and ~0.10% in AA+ rated instruments, with the remaining ~0.53% in other categories, indicating a strong credit profile consistent with the Fund’s low-risk mandate. As of Jun’26, the Fund’s WAM stood at 34 days, while duration stood at 33 days, effectively limiting exposure to interest rate and credit risk and supporting the Fund’s strong liquidity position. The unit holding pattern reflected moderate concentration, with the top 10 investors accounting for ~55.9% of total holdings, indicating moderate redemption pressure; however, the potential pressure is mitigated by the Fund’s short WAM and highly liquid portfolio. In terms of performance, the Fund delivered a return of 12.07% as of Jun’26, compared to the benchmark return of 10.46% and peer average return of 10.55%, reflecting outperformance of approximately 161bps against the benchmark and 152bps against the peer average. The Fund’s strong liquidity profile, high credit quality, short maturity and duration, growing scale, and superior performance relative to both its benchmark and peer group provide support to its overall credit profile.
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 Jun '26, the total AUMs of AHAML stood at PKR 290.561bln.