PACRA Maintains Stability Rating of Al Habib Government Securities Fund

Al Habib Government Securities Fund ("AHGSF" or "the Fund"), a moderate-risk income fund managed with a disciplined and conservative investment philosophy, continues to demonstrate a strong commitment to capital preservation and return optimization. As of December 31, 2024, the Fund strategically allocated approximately 68% of its Assets Under Management (AUM) to short-term Treasury Bills (T-Bills) and 26% to long-term Pakistan Investment Bonds (PIBs), maintaining a strong exposure to sovereign instruments. Around 4% of the portfolio was held in cash and cash equivalents to ensure adequate liquidity, while the remaining 0.58% was tactically positioned in other instruments to capture selective yield-enhancement opportunities.
AHGSF’s credit quality profile remained strong, with nearly 99.42% of its portfolio invested in AAA-rated instruments. This high-grade allocation underscores the Fund’s steadfast adherence to a high-quality credit mandate, significantly mitigating default risk and reinforcing consistent risk-adjusted returns.
The Fund's Weighted Average Maturity (WAM) stood at 329 days as of December 2024, reflecting a deliberate balance between interest rate sensitivity and yield optimization. This positioning allows the Fund to remain agile in responding to monetary policy shifts, while prudently managing duration risk in line with its investment objectives.
Going forward, any material changes in the investment policy and/or compliance with the 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 including the CEO. Three non-executive, two independent, and one executive director make up the board. The CEO, Mr. Kashif Rafi, has vast experience expanding over 20 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 Dec’24, the total AUMs of AHAML stood at PKR 300 bln.