Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of AL Habib Islamic Income Fund
Rating Type | Stability Rating | |
Current (30-Aug-24 ) |
Previous (29-Feb-24 ) |
|
Action | Maintain | Maintain |
Long Term | AA(f) | AA(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
AL Habib Islamic Income Fund (or the "Fund") is a low risk profile Fund. The objective of AHIIF is to provide competitive risk-adjusted returns to its investors by investing in a diversified portfolio of long, medium, and short-term Shariah Compliant debt instruments while taking into account liquidity considerations. The assigned rating reflects the Fund's moderate credit risk profile emanating from the Fund's Investment policy to invest in avenues with sound liquidity. The Fund had allocated ~50.93% in GoP Ijarah sukuk and ~34.94% in bank placements. However, ~10.03% in Corporate Sukuk and ~4.1% in others at the end Jun’24. The Fund has invested ~89.1% in AAA, 0.1% in AA and ~6.7% in AA- and ~4.2% in A rated avenues as at end Jun'24. The duration of the Fund stood at 70 days at the end Jun’24, limiting exposure to interest rate risk. Whereas, the WAM of the Fund stood at 478 days at the end Jun’24, exposing to very high credit risk. However, credit risk is managed through major investments in Govt Securities. The unit holding pattern of the Fund stood at ~82.7% representing top 10 investors concentration, exposing to very high redemption risk. The redemption risk is managed through related party investment.
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'24, the total AUMs of AHAML stood at PKR 141.99bln.