KARACHI: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of Alhamra Islamic Income Fund, a Shariah-compliant fixed income solution designed to provide stable returns through a diversified portfolio of Islamic debt instruments. The fund prioritizes low-risk strategies while offering regular income within an Islamic framework.

As of December 2024, the Alhamra Islamic Income Fund reported Assets Under Management (AUM) of PKR 69.0 billion, marking it as one of Pakistan's largest Islamic fixed income funds. The Fund's asset allocation includes 45% in Government of Pakistan Ijara Sukuks, 26% in bank deposits, and 23% in Development Finance Institutions (DFIs), with the remainder in other approved avenues.

In terms of credit quality, 54% of the fund's assets are in Government Securities or AAA rated instruments, supported by 20% in AA rated and 15% in AA+ rated avenues. This concentration in investment-grade assets aims to provide protection against credit risk while enabling yield enhancement through its diversified portfolio.

With a Weighted Average Maturity (WAM) of 620 days as of December 2024, the fund maintains moderate exposure to credit risk. This duration profile aligns with strategic positioning across Pakistan's Islamic yield curve, with a substantial 45% allocation in sovereign Sukuks acting as a stabilizing anchor for the portfolio.

PACRA noted that any material changes in the fund's investment policy or compliance with the rating criteria could impact the stability rating in the future.