Press Release
VIS Assigns Initial Fund Stability Rating to AL Habib Sovereign Income Fund- Plan 3
Karachi, October 07, 2026: VIS Credit Rating Company Limited (VIS) has assigned the initial Fund Stability Rating (FSR) of ‘AAA (f)’ (Triple A (f)) to AL Habib Sovereign Income Fund- Plan 3 (‘AHSIFP3’ or ‘the Plan’). The medium to long-term rating of ‘AAA (f)’ denotes highest degree of stability in Net Asset Value; Risk is negligible with very low sensitivity to changing economic conditions.
The plan was launched in June 2025. AUM's as of August 2026 were recorded at Rs. 3,773m. The Plan's asset allocation remained consistent with the investment parameters prescribed in the Offering Document. On an average basis during FY26, the portfolio was primarily invested in Government securities (~89%), while the remaining allocation comprised of cash balances (~11%). The Plan’s investment policy mandates investments in instruments with a minimum long-term rating of ‘AA-’. During FY26, the fund’s investments were entirely concentrated in the ‘AAA’ rating band and as per management confirmation, operationally credit risk will be maintained at a minimum AA+ rating, going forward. During FY26, the portfolio's average weighted average maturity (WAM) was reported at 25 days, remaining well below the maximum threshold of 1460 days prescribed in the Offering Document. Going forward, as per the Company, the portfolio’s weighted average maturity is expected to remain below five months.
The Plan maintains a strong liquidity profile, with 100% of its portfolio invested in liquid assets on average. The Plan’s AUM is predominantly held by corporate investors, who accounted for approximately 82% of net assets as of August 2026.
The Plan’s client concentration risk remains high, with nearly the entire AUM concentrated among its top 10 investors as of August 2026. During FY26, the plan yielded an annualized return of 10.75%, outperforming the peer average of 10.2% and underperforming the benchmark return of 10.82%, placing the plan in the first quartile. Going forward, adherence to the asset allocation and credit quality parameters outlined in the offering document will remain important for the rating.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/Methodologies-2026/FSR-Methodology-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf