PACRA Maintains Stability Rating of AL Habib Islamic Income Fund
|Rating Type||Stability Rating|
AL Habib Islamic Income Fund (or the "Fund") is a medium-risk profile Fund. The Fund had allocated ~74% of its net assets to Banks, mainly AAA-rated banks, ~13% of its net assets to corporate Sukuk rated AA whereas ~10% of its net assets to 05-year GOP-Ijara Sukuk. As the Fund has shifted its allocation more towards Bank Placements the duration of the Fund decreased to 18 days (Dec'21: 25 days) limiting the exposure to interest rate risk. The WAM of the Fund also decreased to 481 days (Dec'21: 683 days). The main reason for the decreased while WAM was limiting investments in GOP-Ijarah Sukuk. The unit holding pattern of the Fund was highly concentrated where ~80% were represented by the top 10 investors.
Going forward, material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
AL Habib Asset Management Limited ("AHAML") 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 21 years in the field of Investments and Fund Management. The Company’s diverse product slate includes 5 conventional funds and 4 shariah-compliant funds. The Company has launched AL Habib Pension Fund on June 30, 2022. As of Jun'22, the total net assets of AHAML stood at PKR 50.15bln.