Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the NIT Islamic Income Fund, a medium-risk, Shariah-compliant fixed income investment scheme. The Fund, known for generating stable returns while preserving capital, manages a diversified portfolio of Islamic instruments to balance liquidity and yield enhancement.

As of June 30, 2025, the Fund reported substantial Assets Under Management (AUM) amounting to PKR 2.25 billion, highlighting its significant presence in Pakistan's Islamic finance sector. The Fund strategically allocates its assets with a strong focus on liquidity, holding 47% in cash, 29% in corporate Sukuks, 11% in Government of Pakistan Ijara Sukuks, and 11% in bank placements and DFIs.

The Fund's credit profile is diversified, with 48% of assets in A+ rated instruments, 17% in 'AAA', 12% in 'AA+', and 16.07% spread across 'A1+' and 'A1' rated securities. This structure reflects an active management approach within Shariah-compliant parameters, balancing risk and return.

A notable feature of the Fund is its conservative risk profile, anchored by a Weighted Average Maturity of 101 days. This short-term maturity ensures minimal interest rate sensitivity and quick asset turnover, aligning with the Fund's goal of yield capture and liquidity preservation.

The Fund's immediate liquidity is supported by its 47% cash position, complemented by 11% in bank placements. This structure provides resilience against potential redemption pressures, particularly given that the top 10 investors account for 46% of AUM.

Despite the concentration risk, the Fund's structural defenses, including daily dealing provisions, ensure it can manage redemption pressures effectively while maintaining portfolio stability and Shariah compliance. PACRA notes that any significant changes in the Fund's investment policy or rating criteria could impact its rating going forward.