Lahore, The Pakistan Credit Rating Agency Limited (PACRA) has maintained its stability rating for the Atlas Islamic Income Fund (AIIF), underscoring the Fund's consistent moderate risk profile. AIIF's primary investment objective revolves around the preservation of capital, coupled with achieving a reasonable rate of return by investing in an extensive range of high-quality Islamic income instruments.
As of June 2023, the Fund's investments comprised of ~45.7% in Corporate Sukuks, ~29.6% in Banks, ~20.8% in Ijara Sukuks, and a minor allocation of ~4% in other areas. A marked shift was observed in the Weighted Average Maturity (WAM) of the Fund, which stood at 604 days, indicating a decline from its prior period. This shift primarily stems from an increased emphasis on bank investments. Meanwhile, the Fund's Duration was pegged at 67 days, effectively constraining its exposure to any potential interest rate risk. Notably, the top 10 investors in the Fund held ~58.51% of its assets as of June 2023, a factor that minimizes the chances of intense redemption pressures.
In future evaluations, the key determinants for the Fund's rating will include any significant shifts in its asset allocation strategy, especially those that might adversely affect the Fund's creditworthiness or its susceptibility to interest rate fluctuations. This information was sourced from the Pakistan Credit Rating Agency Limited.