PACRA Maintains Stability Rating of ABL Islamic Income Fund

ABL Islamic Income Fund ("ABL IIF" or "The Fund") continues to execute its investment mandate through a carefully structured portfolio of Shariah-compliant instruments, maintaining its medium-risk profile while emphasizing capital growth and stability in accordance with Islamic principles. As of December 31, 2024, the Fund's asset allocation demonstrates its commitment to Shariah-compliant diversification, with 50.52% invested in Government-guaranteed securities, providing a stable foundation for the portfolio. The allocation includes 32.42% in bank deposits from reputable Islamic financial institutions, ensuring liquidity while adhering to Shariah requirements. A 12.50% allocation to Sukuks offers additional diversification within Islamic investment parameters, complemented by 4.56% in other permissible instruments to maintain portfolio flexibility. The Fund maintains a disciplined approach to credit quality within Islamic investment guidelines, with 53.32% of assets in AAA rated and Government securities, forming the core of its risk management framework. This is supplemented by 28.76% in A+ rated instruments, 8.86% in A1 rated securities, and smaller allocations to AA- (2.49%) and AA rated (1.57%) avenues, all carefully selected under rigorous Shariah-compliant credit analysis. The Fund’s weighted average maturity (WAM) stood at 653 days as of the reporting date, aligning with its medium- to long-term investment horizon. This maturity profile supports the Fund’s objective of navigating varied market cycles while remaining steadfast in its commitment to Shariah principles and capital preservation.
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.