Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Al Ameen Islamic Income Fund, highlighting the fund's medium-risk profile and its commitment to offering competitive Shariah compliant returns. The fund's assets under management have seen significant growth, increasing from PKR 949 million in March to PKR 82,237 million in September, suggesting a boost in investor confidence.

According to PACRA, the fund's asset allocation shows a heavy emphasis on liquidity, with approximately 83% of the portfolio invested in cash and the remainder in placements with banks, development finance institutions, and other eligible instruments. The fund's conservative credit strategy is evident, with 75% of assets in government securities and AAA-rated instruments, and 24% in AA+ rated instruments.

Despite the concentrated unit holding pattern, with the top 10 investors accounting for 71% of the total holdings, the fund's liquid asset allocation and short weighted average maturity of 11 days provide assurance of its capacity to meet redemption demands. The fund outperformed its benchmark, delivering a one-year return of 9.92% compared to the benchmark's 9.42%, underscoring its ability to generate competitive risk-adjusted returns.

PACRA noted that any significant changes in the fund's investment policy or rating criteria could impact the assigned rating in the future.