PACRA Maintains the Stability Rating of ABL Financial Sector Fund

ABL Financial Sector Fund ("ABL-FSF" or "the Fund") is categorized under a medium-risk profile, with the objective of providing income enhancement and capital preservation through investment in prime quality financial sector TFCs/Sukuks, bank deposits, spread transactions, and short-term money market instruments. The Fund's strategy balances yield optimization with liquidity management, making it suitable for investors seeking competitive income returns within the financial sector universe while maintaining adequate capital safety. As of Dec'25, the Fund's Assets Under Management (AUM) stood at PKR 50,618mln, compared to PKR 54,777mln as of Jun'25 (the last review), reflecting a modest contraction of approximately PKR 4,159mln during the review period, broadly in line with the industry trend of investor reallocation amid the prevailing monetary easing cycle. In terms of asset allocation, approximately 78% of the portfolio was held in cash, reflecting a deliberate liquidity-first positioning, while PIBs and placements with banks/DFIs/MFBs accounted for ~11% and ~8% respectively, with the balance in other permissible instruments. From a credit quality perspective, approximately ~25% of the Fund's assets were invested in Government Securities and AAA rated instruments, with the remaining ~60% concentrated in A rated instruments and the remaining in other instruments. This credit profile reflects the Fund's emphasis on prime quality financial sector instruments while maintaining a disciplined approach to credit risk within its medium-risk mandate. The Fund's Weighted Average Maturity (WAM) stood at 19 days as of Dec'25, indicative of a short-duration bias that effectively limits interest rate sensitivity despite the Fund's medium-risk classification. This maturity profile, combined with the predominantly cash-based portfolio positioning, reinforces the Fund's ability to respond swiftly to evolving market conditions and meet potential redemption requirements in a timely manner. The unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~41% of total assets; however, the Fund's liquid asset base and short WAM provide adequate comfort in this regard. In terms of performance, the Fund reported an annualized one-year return of 11.00% as of Dec'25, against a benchmark return of 11.08%, reflecting a marginal underperformance of approximately 8 basis points. This near-benchmark outcome is assessed as broadly consistent with the Fund's deliberate liquidity-first positioning during the review period, which, while constraining absolute yield, has effectively preserved capital and maintained strong portfolio flexibility throughout.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the rating.

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 287bln at the end of Dec'25.