Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the stability rating of the Pakistan Income Fund, acknowledging its low-risk profile and disciplined investment strategy. The Fund, which focuses on capital preservation through high-quality debt instruments, reported Assets Under Management (AUM) of PKR 2.8 billion as of December 2024.

The Fund allocates 68% of its assets to Treasury Bills, 14% to Pakistan Investment Bonds, and 12% to Term Finance Certificates/Sukuks, with the remaining investments in other approved securities. It maintains a strong credit quality with approximately 93% of assets in Government Securities and AAA-rated instruments, while 6% are in AA-rated avenues.

With a weighted average maturity of 657 days, the Fund shows moderate interest rate risk exposure. This risk is mitigated by the portfolio's significant investment in sovereign securities, ensuring substantial protection against credit risk.

PACRA's updated rating reflects confidence in the Fund's sound risk management and high-quality credit exposure. The rating agency notes that any material changes in the investment policy or compliance with rating criteria could impact future ratings.