Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upheld the stability rating for Al Ameen Islamic Income Fund, maintaining an AA(f) long-term rating with a stable outlook. This decision reflects the Fund's continued adherence to its investment policies and its strategic allocation in Shariah-compliant financial instruments.

According to a statement by The Pakistan Credit Rating Agency Limited, Al Ameen Islamic Income Fund is classified as a medium-risk profile fund. It is an open-ended, Shariah-compliant income fund, designed to deliver competitive returns by investing in quality Sukuks, Islamic government securities, and other Shariah-compliant instruments.

As of the end of September 2024, the Fund's assets under management (AUM) stood at PKR 345 million. The investment strategy prioritizes a significant allocation in government securities, with approximately 63.6% of investments in government/AAA-rated categories and around 29.2% in AA-rated avenues.

The Fund's investments include a substantial portion in GOP Ijara Sukuk, accounting for about 50.8% of the portfolio, while approximately 42.0% is allocated to bank placements. The remaining investments are distributed among other instruments.

The duration of the Fund was recorded at 2.06 years at the end of September 2024, indicating a high exposure to interest rate risk. Additionally, the concentration of the top 10 investors was about 40%, suggesting a low level of redemption pressure.

Future changes to the investment policy or rating criteria may affect the current ratings, PACRA noted.