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PACRA Maintains Stability Rating of AL Habib Islamic Savings Fund

Lahore, September 04, 2023 (PPI-OT): AL Habib Islamic Savings Fund (or the “Fund”) is an open-ended medium risk profile Fund. 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 Shariah Compliant 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 Jun’23 was ~21.7% in GoP Ijarah Sukuks, around ~64% cash in bank majority ~54.3% in AAA rated avenues while remaining ~9.6% in AA rated avenues.

However, ~8.9% allocation in the form of TDRs within bank rated AA+ whereas, ~5.3% was diversified into various others avenues. The duration of the Fund stood at 4 days at the end Jun’23 limiting the exposure to interest rate risk. However, the WAM of the Fund stood at 78 days at the end Jun’23, exposing high credit risk. The top 10 investors concentration of the Fund stood at ~79.8% 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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