PACRA Maintains the Stability Rating of Al Ameen Islamic Income Fund

Al Ameen Islamic Income Fund ("AIIF" or "the Fund") is categorized under a medium-risk profile, with the objective of providing a competitive rate of return through investment in quality Sukuks, Shariah compliant Government Securities, Islamic bank deposits, and short- and long-term Shariah debt instruments. As of Mar'26, the Fund's Assets Under Management (AUM) stood at PKR 949mln, compared to PKR 1,102mln as of Jun'25 (the last review), reflecting a modest contraction in fund size during the review period, due to investor reallocation amid the prevailing monetary easing cycle. In terms of asset allocation, approximately 50% of the portfolio was invested in GoP Ijarah Sukuks, 42% in cash, 5% in TFCs/Sukuks, and the remaining ~3% in other eligible instruments, reflecting a well-structured Shariah compliant portfolio anchored in sovereign-backed Islamic securities, complemented by a meaningful cash allocation that provides a strong liquidity buffer. From a credit quality perspective, approximately 53% of the Fund's assets were invested in AAA rated instruments and Government Securities, ~35% in AA+ rated avenues, ~5% in AA rated instruments, and ~4% in AA- rated instruments, with the remainder in other exposures. The overall credit profile is considered strong, with the majority of exposures concentrated in high-grade AAA and AA category instruments. The Fund's Weighted Average Maturity (WAM) stood at 391 days as of Mar'26, reflecting relatively high sensitivity to interest rate movements. This extended duration positioning is consistent with the Fund's income-oriented strategy of capturing higher yields on longer-tenor Shariah compliant sovereign instruments; however, it also implies that the Fund carries meaningful interest rate risk. Meanwhile, the unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~59% of the Fund's total holdings, of which ~22% comprise gratuity funds which are typically long-term and stable in nature, providing a degree of resilience to the investor base. The overall concentration level is assessed as moderate and manageable, with the Fund's significant cash allocation and dominant GoP Ijarah Sukuk positioning providing adequate comfort regarding its ability to meet potential redemption requirements in a timely manner. In terms of performance, the Fund reported an annualized one-year return of 9.28% as of Mar'26, against a benchmark return of 9.69%, reflecting an underperformance of approximately 41 basis points. This gap is assessed as broadly attributable to the Fund's conservative cash-heavy positioning during the review period.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.

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 353bln at the end of Mar'26.