Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Al Ameen Islamic Income Fund, affirming its robust credit fundamentals and strategic management of investment duration. The Fund, an open-end Islamic income strategy, upholds its commitment to delivering competitive returns while adhering to Shariah investment principles.

At the end of March 2025, the Fund reported a conservative asset allocation, with approximately 89.41% of its net assets invested in Government of Pakistan Ijarah Sukuks. This allocation underscores the Fund's focus on sovereign creditworthiness, offering investors a stable yield profile supported by the government's financial backing. The remaining assets were allocated to cash and cash equivalents at about 4.73%, ensuring liquidity, and 5.36% were invested in diversified Shariah-compliant instruments, including high-grade corporate Sukuks and Islamic placements.

The Fund's credit quality remains high, with 92.53% of the portfolio invested in AAA-rated or government-backed securities. Additionally, 1.6% of the portfolio is allocated to AA-rated instruments, and a modest 5.8% is distributed across other approved exposures. This allocation strategy aligns with the Fund's risk-calibrated return approach and strict credit selection criteria.

The Fund's Weighted Average Maturity (WAM) is 409 days, indicating a longer duration compared to its peers in the Islamic income space. This strategy positions the Fund to benefit from term premium opportunities, particularly in a stable or declining interest rate environment. While this approach introduces moderate exposure to duration and credit spread volatility, it is balanced by the Fund's high sovereign composition and strong liquidity profile.

Future changes in the Fund's investment policy or rating criteria could affect its assigned rating.