The Pakistan Credit Rating Agency Limited
30-Dec-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Assigns Initial Fund Ratings to AL Habib Islamic Cash Fund
| Rating Type | Stability Rating | |
|
Current (30-Dec-22 ) |
||
| Action | Initial | |
| Long Term | AA+(f) | |
| Short Term | - | |
| Outlook | Stable | |
| Rating Watch | - | |
AL Habib Islamic Cash Fund (or the "Fund") is an open ended very low risk profile fund. The objective of the Fund is to provide its unit holders optimum returns from a shariah compliant portfolio of low risk and short duration assets while being highly liquid. The assigned rating reflects the Fund's low credit risk profile emanating from Fund's Investment policy to invest in strong credit quality investment avenues with sound liquidity. The Fund had invested 93.07% in single bank rated AA (giving rise to concentration risk) whereas ~5.67% in TDRs and ~1.21% in others at the end Nov'22. The duration and the WAM of the Fund stood at 1-day at the end Nov'22, limiting the exposure to interest rate and credit risk. The unit holding pattern of top ten investor concentration is ~91.77% at the end Nov'22. Going Forward the Fund is intended to invest in AA and above rated avenues. Out of which at least 50% would remain invested in AAA rated avenues.
Going forward, the Fund ensures to diversify their investment in AA and above rated avenues. Any material changes in the investment policy or the devised 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 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, 4 shariah-compliant funds, 1 shariah compliant pension fund and 1 conventional pension fund. As of Nov'22, the total net assets of AHAML stood at PKR 52bln.