PACRA Maintains the Stability Rating of ABL Islamic Income Fund

ABL Islamic Income Fund ("ABL-IIF" or "the Fund") is categorized under a medium-risk profile, with the objective of providing investors an opportunity to earn higher income over the medium to long-term through investment in a diversified portfolio of money market and debt instruments permissible under Shariah principles. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 1,763mln, compared to PKR 1,592mln as of the last review, reflecting a growth in fund size during the review period, indicative of gradual investor interest in the Fund's Shariah compliant income proposition. In terms of asset allocation, approximately 45% of the portfolio was invested in cash, 32% in Sukuks, 17% in Government Guaranteed instruments, and ~5% in other receivables, reflecting a well-structured Shariah compliant portfolio spanning liquidity and duration instruments with a meaningful sovereign-backed allocation providing stability to the overall asset base. From a credit quality perspective, approximately 24% of the Fund's assets were invested in Government Securities and AAA rated instruments, ~39% in AA+/A1+ rated instruments, ~19% in AA/A1 rated instruments, and 0% in A rated instruments, with the others. The overall credit profile is considered strong and fully compliant with the assigned rating criteria. The Fund's Weighted Average Maturity (WAM) stood at 60 days as of Jun'26, reflecting limited sensitivity to interest rate movements. Meanwhile, the unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~52% of the Fund's total holdings, supported by a stable base of provident and gratuity funds, all of which are typically long-term and sticky in nature, providing a resilient institutional anchor to the investor base. The Fund's well-structured Shariah compliant portfolio and adequate cash positioning further reinforce its ability to meet any potential redemption requirements in a timely and orderly manner. In terms of performance, the Fund delivered a one-year return of 8.79% as of Jun'26, against a benchmark return of 9.43%, reflecting an underperformance of approximately 64 basis points.
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 306bln at the end of Jun'26.