Lahore, September 06, 2021 (PPI-OT):The rating of First Habib Islamic Income Fund (or the “Fund”) reflects the Funds medium risk profile. At end Jun’21, majority of the Fund’s assets were invested in bank placements/deposits (~21.4%) while the rest are allocated in Sukuks (~10.6%), GOP ijarah (~34.2%) and TDRs (~30%). The Fund has highly concentrated unit holding pattern, with top 10 investors representing ~95% of the fund size at end Jun’21. The weighted average maturity (WAM) of the Fund is ~815 days in Jun’21 (Dec’20: ~870 days). The duration of the fund is 54 days. Since Dec’20 the net assets of the Fund has manifested an increase by 25% and stood at PKR 14.05mln at end Jun’21. The investment policy of the Fund strictly prohibits investments in below A- rated avenues.

Going forward, the management intends to maintain funds allocation towards cash placements in ‘AA’ and above rated banks. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remain critical for the 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