PACRA Maintains the Stability Rating of Al Ameen Islamic Income Fund

Al Ameen Islamic Income Fund (“AA-IIF” 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 Sep’26, the Fund’s Assets Under Management (AUM) stood at PKR 82,237mln, compared to PKR 949mln as of Mar’26 (the last review), reflecting an expansion in fund size over the review period, indicative of investor confidence in the Fund’s Shariah compliant income offering. In terms of asset allocation, approximately 83% of the portfolio was invested in cash, ~16% in placements with banks and DFIs, ~0.1% in TFCs/Sukuks, and ~1% in other eligible instruments, reflecting a near-exclusively liquid portfolio positioning that provides a very strong liquidity foundation to the Fund’s income generation strategy. From a credit quality perspective, approximately 75% of the Fund’s assets were invested in Government Securities and AAA rated instruments, ~24% in AA+ rated instruments, and ~0.1% in AA rated avenues, with the remainder in other exposures. The overall credit profile is considered very strong, with approximately 75% of exposures concentrated in AAA/Government Securities and 24% in AA+ rated instruments, reflecting the Fund’s disciplined adherence to a highly conservative Shariah compliant credit approach. The Fund’s Weighted Average Maturity (WAM) stood at 11 days as of Sep’26, reflecting very limited sensitivity to interest rate movements and reinforcing the Fund’s very strong liquidity position. Meanwhile, the unit holding pattern reflects a relatively high degree of concentration, with the top 10 investors accounting for ~71% of the Fund’s total holdings. While this exposes the Fund to elevated redemption risk from a concentrated investor base, the Fund’s near-exclusively liquid asset allocation and very short WAM profile provide very strong comfort regarding its ability to meet any potential redemption requirements swiftly. In terms of performance, the Fund delivered a one-year return of 9.92% against a benchmark return of 9.42% over the same period, reflecting a commendable outperformance of approximately 50 basis points. This above-benchmark outcome demonstrates the Fund’s very strong capacity to generate competitive Shariah compliant risk-adjusted returns while maintaining its conservative, liquidity-first investment discipline throughout 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 446bln at the end of Sep'26.