PACRA Maintains Stability Rating of ABL Income Fund

ABL Income Fund (“ABL IF” or “the Fund”), a medium-risk profile fund, aims to deliver competitive risk-adjusted returns by investing in a diversified mix of short, medium, and long-term fixed income and debt instruments, both within and outside Pakistan. The Fund follows a strategy of balancing income generation with measured risk exposure through its blended allocation approach. As of June 2025, the Fund’s assets under management (AUM) stood at PKR 4 billion. The Fund’s asset allocation reflected its balanced positioning, with ~37% maintained in cash, ~22% invested in Government of Pakistan Treasury Bills (T-Bills), ~14% deployed in TFCs/Sukuks, while the remaining portion was allocated across other avenues. This allocation mix underscores the Fund’s focus on income enhancement while retaining adequate liquidity buffers. The credit quality of the Fund remained diversified, with ~52% exposure in government securities/AAA-rated avenues, ~13% in A+ rated instruments, ~10% in BBB+, and the remaining invested across other investment-grade exposures. This composition highlights the Fund’s spread across multiple rating tiers, reflective of its medium-risk profile. The Weighted Average Maturity (WAM) of the Fund was reported at 578 days as of June 2025, indicating a long maturity profile. This exposes the Fund to higher sensitivity toward interest rate and credit risk, in line with its positioning to capture medium to long-term income opportunities. The unit holding structure of the Fund indicated high concentration, with the top 10 investors collectively accounting for ~67% of outstanding units at end-June 2025. While this concentration introduces redemption pressure, the Fund’s allocation in cash and short-term avenues provides a liquidity cushion to manage withdrawals without significantly impairing portfolio stability.
Going forward, any material changes in the investment policy or the devised 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 273bln at the end of Jun'25.