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The Pakistan Credit Rating Agency Limited
Press Release

Date
16-Jun-25

Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of ABL Income Fund

Rating Type Stability Rating
Current
(16-Jun-25 )
Previous
(24-Dec-24 )
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

ABL Income Fund ("ABL IF" or "The Fund") continues to deliver on its investment mandate through a carefully structured portfolio of fixed income instruments, maintaining its medium-risk profile while emphasizing capital preservation and stability. The Fund's diversified approach across short, medium, and long-term debt securities provides investors with exposure to a balanced mix of domestic and international fixed income assets. As of December 31, 2024, the Fund's asset allocation demonstrates its commitment to diversification and risk management. The portfolio includes 44.12% in bank deposits, ensuring liquidity and capital protection, while 25.16% is allocated to Pakistan Investment Bonds (PIBs), offering stability through sovereign-backed securities. A 21.43% allocation to Term Finance Certificates (TFCs) and Sukuk provides portfolio diversification, complemented by 6.41% in Treasury Bills (T-Bills) for short-term stability. The remaining investments are distributed across other permissible instruments to maintain optimal portfolio balance. The Fund maintains a disciplined approach to credit quality, with 50.92% of assets invested in AAA rated instruments and Government securities, forming the core of its risk management framework. This is supplemented by 21.64% in A+ rated instruments, 10.41% in AA-, 1.31% in AA, and 8.76% in A1 rated securities, all carefully selected under rigorous credit analysis. The remaining 2.88% allocation is managed with strict oversight to maintain overall portfolio quality. With a weighted average maturity of 544 days, the Fund's duration profile reflects its balanced approach to fixed income investing, designed to navigate various interest rate environments while maintaining portfolio stability.
Going forward, any material changes in the investment policy and compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Incorporated in 2007, ABL AMC is a wholly owned subsidiary of Allied Bank Limited (ABL). ABL operates with 1,400 plus branches including 117 Islamic banking branches, 8 Digital/ Self Service branches & 2 overseas branches. ABL AMC possesses licenses for asset management, pension management and investment advisory services. As the leading private sector asset management and investment advisory Company in Pakistan, offerings include a comprehensive range of both Conventional and Shariah Compliant investment solutions across all major asset classes. Assets under management of the Company stood at ~PKR 365,051 mln at the end of Dec'24.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.