PACRA Maintains Stability Rating of AL Habib Islamic Income Fund

AL Habib Islamic Income Fund ('AHIIF' or 'the Fund') is a medium risk profile fund. The primary 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. As of Jun’26, the Fund’s AUM stood at ~PKR 7.048bln, down from PKR 15.036bln as of Dec’25, reflecting a significant contraction in fund size during the period. In terms of asset allocation, approximately 78.09% of the portfolio was invested in GoP Ijarah Sukuk, 17.24% in Cash, and ~2.02% in Corporate Sukuk, with the remaining ~2.65% allocated to other instruments. The allocation reflects a strong sovereign-backed investment strategy, supported by a meaningful liquidity position. From a credit quality perspective, ~78.09% of the Fund’s assets were invested in Government Securities, ~16.55% in AAA rated avenues, ~2.00% in A rated instruments, ~0.11% in AA+ and ~0.01% in A+ rated avenues, with the remaining ~2.65% allocated to other exposures, indicating a strong overall credit quality profile. The Fund’s WAM stood at 585 days as of Jun’26, while duration stood at 241 days, reflecting relatively high exposure to longer-tenor instruments and moderate sensitivity to interest rate movements. The unit holding pattern remained highly concentrated, with the top 10 investors accounting for ~87.70% of total holdings, indicating higher redemption pressure. In terms of performance, the Fund reported an annualized return of 10.49% as of Jun’26, compared to a benchmark return of 9.60% and peer average return of 11.43%, indicating outperformance relative to both its benchmark and comparable funds.
Going forward, any material changes, in the investment policy, and/ or compliance with rating criteria for the assigned rating would have 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 8 conventional funds and 5 Shariah-compliant in open-ended schemes. As of Jun '26 the total AUMs of AHAML stood at PKR 290.561bln.