PACRA Maintains the Stability Rating of ABL Income Fund

ABL Income Fund (“ABL IF” or the “Fund”) is a medium-risk income scheme, with the objective to earn competitive risk-adjusted returns by investing in a diversified blend of short-, medium-, and long-term fixed income and debt instruments, both within and outside Pakistan. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at PKR 3,273mln, compared to PKR 4,073mln as of Jun’25 (the last review), reflecting a decline in fund size, attributable to net outflows during the period. In terms of asset allocation, approximately ~58% of the portfolio was maintained in cash, ~17% in Treasury Bills, ~15% in TFCs/Sukuks, and ~10% in Government-guaranteed instruments. The allocation indicates a diversified strategy, combining liquidity with exposure to spread-generating instruments. From a credit quality perspective, the Fund maintained a sound profile, with approximately ~60% of assets invested in Government securities and AAA-rated instruments, ~5% in A+ rated instruments, and ~24% in A-rated instruments. While the majority of exposures remain in high-quality assets, the presence of mid-tier instruments reflects a moderate credit risk profile, in line with the Fund’s mandate. As of Dec’25, the Fund’s Weighted Average Maturity (WAM) stood at 379 days, indicating elevated sensitivity to interest rate movements and credit risk, relative to shorter-duration funds, while enabling the Fund to capture higher yields across longer tenors. The unit holding pattern reflects high investor concentration, with the top 10 investors accounting for ~75% of total units. Notably, ~50% of these holdings are attributed to associated companies and provident funds, which typically exhibit relatively stable investment behavior. Accordingly, the Fund’s overall redemption risk remains manageable despite the concentration. In terms of performance, the Fund delivered a one-year annualized return of 11.42% as of Dec’25, outperforming its benchmark return of 11.08%. The performance remains competitive, supported by exposure to higher-yielding instruments and active duration positioning.
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.