PACRA Maintains Stability Rating of AL Habib Government Securities Fund

AL Habib Government Securities Fund ('AHGSF' or 'the Fund'), a moderate-risk income fund designed to deliver stable and competitive returns, continues to demonstrate disciplined adherence to its objective of investing primarily in high-quality Government Securities. The AUM size for the Fund at the end-Jun'25 stood at 11,580mln. As of June 30, 2025, the Fund maintained a structured asset allocation framework, strategically deploying approximately 38.96% of its portfolio into short-term Treasury Bills (T-Bills) and 25.18% into long-term Pakistan Investment Bonds (PIBs), thereby sustaining meaningful exposure to sovereign instruments. Around 32.8% of the Fund’s Assets Under Management (AUM) were held in cash and cash equivalents to ensure adequate liquidity and timely reinvestment capacity in response to evolving market conditions, while the remaining 3.06% was allocated to other avenues to capture selective yield-enhancement opportunities.
The Fund’s credit quality profile remained sound, reflecting strong adherence to its conservative investment mandate. At the end of June 2025, approximately 64.14% of the portfolio was invested in Government Securities and 32.8% in AAA-rated instruments, with the residual 3.06% placed in other compliant avenues. This high-grade concentration underscores AHGSF’s commitment to minimizing default risk and delivering consistent risk-adjusted returns.
In terms of interest rate positioning, the Fund’s Weighted Average Maturity (WAM) stood at 158 days as of June 2025, indicating exposure to moderate credit rate risk while maintaining agility amid shifts in the monetary policy environment. The duration of the Fund measured 110 days, reflecting a balanced stance aimed at optimizing yield without compromising its conservative risk profile.
Going forward, any material changes in the investment policy or devised rating criteria for the assigned rating would have an 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 7 conventional funds and 5 Shariah-compliant in open-ended schemes. As of Jun'25, the total AUMs of AHAML stood at PKR 253bln.