The Pakistan Credit Rating Agency Limited
01-Sep-23
Analyst
Wajeeha Asghar
wajeeha.asghar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of AL Habib Islamic Cash Fund
| Rating Type | Stability Rating | |
|
Current (01-Sep-23 ) |
Previous (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.