PACRA Maintains Stability Rating of Al Ameen Islamic Income Fund

Al Ameen Islamic Income Fund (“AA-IIF” or “the Fund”), an open-end Islamic income strategy, continues to demonstrate strong credit fundamentals and prudent duration management, aligning with its mandate to deliver competitive returns within a medium-risk framework. The Fund is actively managed in accordance with Shariah investment principles, with a focus on capital preservation, consistent income generation, and macroeconomic resilience. As of end-March 2025, AA-IIF reported a highly conservative asset allocation, with approximately 89.41% of net assets deployed in Government of Pakistan (GOP) Ijarah Sukuks. This strategic weighting reflects the Fund’s emphasis on sovereign creditworthiness, offering investors a stable yield profile backed by the full faith and credit of the Government of Pakistan. The remaining allocations included ~4.73% in cash and cash equivalents, providing short-term liquidity flexibility, and ~5.36% in diversified Shariah-compliant instruments, including high-grade corporate Sukuks and Islamic placements. In terms of credit quality, the Fund remained firmly positioned in the upper tier of the rating spectrum. At period-end, ~92.53% of the portfolio was invested in AAA-rated or government-backed securities, while 1.6% was allocated to AA-rated instruments. A modest 5.8% was distributed across other approved exposures, consistent with the Fund’s risk-calibrated return strategy and strict adherence to internal credit selection criteria. The Fund’s Weighted Average Maturity (WAM) stood at 409 days, reflecting a longer-duration positioning relative to peers in the Islamic income space. This deliberate tilt toward extended maturity instruments positions the Fund to capitalize on term premium opportunities, particularly in a stable-to-declining interest rate environment. While the longer WAM introduces moderate exposure to duration and credit spread volatility, it is balanced by the portfolio’s high sovereign composition and strong liquidity profile.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
UBL Fund Managers Limited, incorporated in 2001 as a public unlisted company, is one of Pakistan's leading Asset Management and Investment Advisory companies. It is licensed by the Securities and Exchange Commission of Pakistan (SECP) to carry out these services under the Non-Banking Finance Companies Regulations. The Company is ~98% owned by United Bank Limited, while the remaining stake belongs to individuals. The Company’s Board of Directors comprises seven members including the CEO. Mr. Asif Ali Qureshi, CFA, serves as the Chief Executive Officer (CEO) and Director of UBL Asset Management Company Limited. With over 25 years of experience in the financial sector, his expertise spans banking, economic and financial research, investment banking, consulting, teaching, training, and entrepreneurship. The Company’s diverse product slate includes 18 conventional funds and 10 Shariah-compliant funds belonging to all major categories. The assets under management (AUMs) stood at ~PKR 296.77 bln at the end of Apr'25.