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PACRA Maintains Stability Rating of AL Habib Islamic Cash Fund

Lahore, September 04, 2023 (PPI-OT): AL Habib Islamic Cash Fund (or the “Fund”) is an open ended very low risk profile Fund. The objective of the Fund is to provide its unit holders optimum returns from a shariah compliant portfolio of low risk and short duration assets while being highly liquid. The assigned rating reflects the Fund’s low credit risk profile emanating from Fund’s Investment policy to invest in strong credit quality investment avenues with sound liquidity. The Fund had allocated ~75.7% cash in bank of which ~67.62% in triple AAA rated banks while remaining ~8.79% in double AA rated bank.

Moreover, ~18.97% of the allocation takes the form of TDRs within banks rated AA+, while ~5.3% are placed in other avenues at the end Jun’23. The duration of the Fund stood at 1-day at the end Jun’23. limiting the exposure to interest rate risk, However, the WAM of the Fund stood at 13 days at the end Jun’23, limiting the exposure to credit risk. The top 10 investor concentration of the Fund stood at ~79.2% 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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