PACRA Maintains Stability Rating for Al Ameen Islamic Income Fund

Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its stability rating for the Al Ameen Islamic Income Fund, emphasizing the Fund’s commitment to providing competitive returns through high-quality, Shariah-compliant investments. As of September 2025, the Fund’s assets under management (AUM) amounted to PKR 1,102 million.

The Fund’s investment strategy remains conservative, with about 56% of its assets allocated in cash, 37% in GOP Ijarah Sukuk, 5% in TFCs/Sukuk, and the remainder spread across other avenues. This approach reflects a focus on maintaining liquidity while ensuring stable income through exposure to government-backed and high-grade Islamic instruments.

Notably, the credit quality profile of the Fund remains robust, with approximately 63% of its exposure in AAA-rated or government securities. The remaining investments are divided among AA- at 27%, AA at 7%, and other rated avenues. This distribution underscores the Fund’s preference for quality Shariah-compliant issuances.

The Fund’s Weighted Average Maturity (WAM) stands at 427 days, indicating a relatively longer duration that suggests elevated exposure to credit and interest rate risk. This extended maturity period reflects a strategic decision to enhance return potential through substantial allocations in long-term GOP Ijarah Sukuk and other fixed-rate Islamic instruments.

In terms of unit holding structure, the top 10 investors account for approximately 56% of the total holdings, indicating a moderately concentrated investor base. While this could present some redemption pressure, the Fund’s liquid profile and significant allocation to government-backed securities provide a buffer to manage potential withdrawals efficiently.

Future material changes in the Fund’s investment policy or the rating criteria could impact the assigned rating, PACRA noted.