PACRA Maintains Stability Rating of Al Ameen Islamic Income Fund

Al Ameen Islamic Income Fund ("AIIF" or the "Fund") is a medium-risk profile Fund. It is an open-ended Shariah-compliant Income Fund with the objective to provide a competitive rate of return to its investors by investing in quality Sukuks, Shariah-compliant Government Securities, Islamic Bank Deposits, and short and long-term Shariah debt instruments. The investment policy of Fund targets allocation of a maximum 75-100% in Shariah compliant Government Securities. The AUM's of the Fund as of end Mar'24 was PKR 298mln. The credit quality of the Fund was ~83% in AAA rated category and ~11% in AA rated avenues at the end of Mar’24. At the end of Mar’24, the Fund had allocated ~83% in GOP Ijara sukuk, ~11% in banks in the form of deposits and placements and the remaining was invested in others. The WAM of the Fund was 910 days at the end of Mar'24, representing high exposure to credit risk. The Duration of the Fund stood at 1 day at the period end Mar'24; representing low exposure to interest rate risk. The top 10 investors' concentration of the Fund, at the period end Mar'24 was ~70.63% exposing the Fund to high level of redemption pressure. Keeping in view the strong liquidity profile of the Fund, the ability of the Fund to meet the redemptions in a timely manner is considered strong.
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. The CEO, Mr. Yasir Qadri, has been associated with the asset management industry for over sixteen years. The board’s Chairman, Mr. Imran Sarwar, who has over 25 years of leadership, management, strategy, and risk experience in banking. He holds a business degree from Ohio Wesleyan University and Law from the University of Punjab. The Company’s diverse product slate includes 18 conventional funds and 11 Shariah-compliant funds as of the end of Mar'24 belonging to all major categories. The assets under management stood at ~PKR 174.03bln at the end of Mar'24.