Lahore, March 07, 2022 (PPI-OT):The rating of AL Habib Income Fund (or the “Fund”) reflects the fund’s moderate risk profile. The fund has allocated ~89% in bank deposits out of which ~99% were in AA+ rated bank, while ~4% to TFCs having rating AA, and ~4% to Sukuks having rating A and above. However, concentration risk has arisen depicting investment in a single bank. As per the investment policy, the Fund can invest up to 100% of its assets as bank accounts having rating of ‘A’ and above.

The Fund has high concentrated unit holding pattern, with top 10 investors representing ~77% of the Fund size at end Dec’21. The WAM of the Fund decreased to ~196 days at Dec’21 (Jun’21: ~276 days). While the duration of the Fund was Kept on lower side i.e. 7 days at Dec’21, limiting the exposure to interest rate risk. Going forward, the management intends to diversify its Funds allocation by placing 50% in AAA rated avenues (Govt. Securities and bank deposits) and 25% in AA avenues. Asset credit quality and duration would remain imperative for rating.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com