Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Al Ameen Islamic Income Fund (AIIF), a medium-risk profile, Shariah-compliant income fund. AIIF aims to deliver competitive returns through investments in quality sukuks, Islamic government securities, and bank deposits.
According to The Pakistan Credit Rating Agency Limited announcement issued on 02 July 2024, as of the end of March 2024, AIIF managed assets totaling PKR 298 million. The fund predominantly invests in government-issued Islamic securities, with up to 83% of its allocations in GOP Ijara sukuk and around 11% in Islamic bank deposits. The investment strategy emphasizes maintaining a high credit quality with approximately 83% of its investments rated AAA and 11% rated AA.
The fund’s Weighted Average Maturity (WAM) of 910 days indicates a high exposure to credit risk, although its duration of just one day at the end of March 2024 suggests low exposure to interest rate fluctuations. Notably, the concentration of investments among the top ten investors was approximately 70.63%, posing a high level of redemption pressure. Despite this, PACRA assesses the fund’s liquidity profile as strong, underscoring its capability to meet redemptions timely.
PACRA notes that any significant adjustments in AIIF’s investment policy or changes in the criteria used for ratings could influence future assessments. This rating reassurance underscores the fund's robust management practices in aligning with Shariah-compliant investment avenues while managing associated risks effectively.