The Pakistan Credit Rating Agency Limited
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Wajeeha Asghar

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PACRA Maintains Stability Rating of AL Habib Islamic Cash Fund

Rating Type Stability Rating
(01-Sep-23 )
(27-Jun-23 )
Action Maintain Maintain
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable 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 allocated ~75.7% cash in bank of which ~67.62% in triple AAA rated banks while remaining ~8.79% in double AA rated bank. Moreover, ~18.97% of the allocation takes the form of TDRs within banks rated AA+, while ~5.3% are placed in other avenues at the end Jun’23. The duration of the Fund stood at 1-day at the end Jun’23. limiting the exposure to interest rate risk, However, the WAM of the Fund stood at 13 days at the end Jun’23, limiting the exposure to credit risk. The top 10 investor concentration of the Fund stood at ~79.2% at the end Jun’23.
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 6 conventional funds, 5 shariah-compliant funds, 1 shariah compliant pension fund and 1 conventional pension fund. As of Jun'23, the total net assets of AHAML stood at PKR 64.3bln.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.