Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Pakistan Income Enhancement Fund (PIEF), which operates under a medium risk profile. The Fund aims to generate returns through an aggressive strategy in the debt and fixed income market. As of June 2025, PIEF reported Assets Under Management (AUM) of PKR 1,072 million, indicating its moderate standing within the fixed income fund sector.

PIEF's asset allocation reveals a largely liquid portfolio, with 70.8% invested in Cash Placements, 14.9% in GoP Ijara Sukuk, 7.1% in TFCs/Sukuk, and 6.2% in other assets, including receivables. A small fraction, 0.7%, is held in T-Bills. This composition underscores a significant allocation to sovereign and near-sovereign instruments.

In credit quality terms, the Fund's investments are predominantly in high-grade securities. The distribution includes 62.3% in AA+, 21.3% in Gov/AAA+, 6.2% in NR, 3.3% in AA-, 1.7% in AA, and minimal allocations in A+ and A- rated instruments.

The Weighted Average Maturity (WAM) of the Fund stands at 320 days, reflecting a moderately extended duration profile. This duration is consistent with its strategy to seek returns while adhering to its medium-risk mandate.

PACRA noted that any significant changes in PIEF's investment policy or deviations from rating criteria could affect its stability rating. The Fund's maintained rating suggests confidence in its current management and investment strategies.