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Lahore, September 04, 2023 (PPI-OT): AL Habib Income Fund (or the “Fund”) reflects the medium risk profile. The objective of the Fund is to provide competitive risk adjusted returns to its investors by investing in a diversified portfolio of long, medium and short-term debt instruments while taking into account liquidity considerations. The assigned rating reflects the Fund’s moderate credit risk profile emanating from Fund’s Investment policy to invest in avenues with sound liquidity. The allocation of the Fund as of the end of June 2023 was ~42.9% in PIBs, around ~45.7% in T-bills, and about ~5.96% in GoP Ijarah Sukuks. A small portion of around ~0.29% was held in Cash, primarily consisting of bank with an AAA rating.
Additionally, ~2.05% was invested in TFCs with a AA rating, while ~ 0.95% was allocated to Sukuks rated AA- and above. The remaining 2.1% was diversified into various other investment avenues. The duration of the Fund stood at 16 days at the end Jun’23, limiting exposure to interest rate risk. However, the WAM of the Fund stood at 497 days at the end Jun’23, exposing high credit risk. However, credit risk is high due to major investment in govt securities. The top ten investor concentration of the Fund stood at ~82.1% at the end Jun’23. Going forward, any material changes in the investment policy or devised rating criteria for the assigned rating would have an impact on the ratings.
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
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