The Pakistan Credit Rating Agency Limited
30-Aug-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of AL Habib Islamic Savings 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 Savings Fund (or the "Fund") is an open-ended medium-risk profile Fund. The objective of the Fund 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 ~73.15% in GoP Ijarah Sukuks, ~18.86% in Bank Placements whereas, ~7.99% in others at the end Jun’24. The Fund had invested ~91.9% in AAA, 0.1% in AA and ~7.99% in A rated avenues. The duration of the Fund stood at 75 days at the end Jun’24 limiting the exposure to interest rate risk. However, the WAM of the Fund stood at 316 days at the end Jun’24, exposing very high credit risk. The credit risk is managed through investments in Govt Securities. The unit holding pattern of the Fund was ~54.4% at the end Jun’24, representing top 10 investors concentration, exposing to 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.