The Pakistan Credit Rating Agency Limited
06-Nov-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Assigns Initial Stability Rating to AL Habib Government Securities Fund
| Rating Type | Stability Rating | |
|
Current (06-Nov-24 ) |
||
| Action | Initial | |
| Long Term | AAA(f) | |
| Short Term | - | |
| Outlook | Stable | |
| Rating Watch | - | |
AL Habib Government Securities Fund (or the "Fund") is a very low-risk profile fund. The Fund is categorized in the Income category. The objective of the Fund is to generate a competitive return with low risk, by investing primarily in Government Securities. The Fund has a strong investment portfolio with a majority stake in secured avenues. The Fund had allocated its assets as ~54.28% in PIBs, ~42.00% in T-bills, and remaining in other assets as at end Sep’24. The Fund has invested ~98.9% in AAA and remaining in other rated avenues as at end Sep'24. The duration of the Fund stood at 155 days at at end Sep’24, exposing moderate exposure to interest rate risk. However, the WAM of the Fund stood at 387 days at at end Sep’24, exposing very high credit risk. However, credit risk is manageable due to major investments in Govt Securities. The unit holding pattern of the Fund stood at ~43.64% representing top 10 investors concentration, exposing the Fund to moderate level of redemption risk.
Going forward, any material changes in the investment policy would remain imperative. While compliance with the devised rating criteria for the assigned rating would remain critical.
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 including the CEO. Three non-executive, two independent, and one executive directors make up the board. 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 open-ended schemes. As of Jun'24, the total AUMs of AHAML stood at PKR 141.99bln.