Muhammad Zain Ayaz
PACRA Maintains Stability Rating of First Habib Islamic Income Fund
|Rating Type||Stability Rating|
The rating of First Habib Islamic Income Fund (or the "Fund") reflects the Funds medium risk profile. At end Jun’21, majority of the Fund's assets were invested in bank placements/deposits (~21.4%) while the rest are allocated in Sukuks (~10.6%), GOP ijarah (~34.2%) and TDRs (~30%). The Fund has highly concentrated unit holding pattern, with top 10 investors representing ~95% of the fund size at end Jun’21. The weighted average maturity (WAM) of the Fund is ~815 days in Jun'21 (Dec'20: ~870 days). The duration of the fund is 54 days. Since Dec'20 the net assets of the Fund has manifested an increase by 25% and stood at PKR 14.05mln at end Jun'21. The investment policy of the Fund strictly prohibits investments in below A- rated avenues.
Going forward, the management intends to maintain funds allocation towards cash placements in 'AA' and above rated banks. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.
AL Habib Asset Management Limited incorporated in September 2005 as an unlisted public company, is one of the 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 20 years in the field of Investments and Fund Management. The Company’s diverse product slate includes 4 conventional funds and 2 shariah compliant funds.