PACRA Maintains Stability Rating of ABL Islamic Sovereign Fund

ABL Islamic Sovereign Fund ("ABL ISF" or "The Fund") continues to operate within its medium-risk mandate, focusing on delivering competitive returns while prioritizing capital preservation and stability. Its asset allocation reflects a balanced mix of Shariah-compliant avenues designed to provide both income generation and portfolio resilience. As of June 30, 2025, the portfolio was predominantly allocated to Sukuks (~52%), supplemented by cash placements (~24%) and government-guaranteed exposures (~3%), with the balance deployed in other permissible instruments. From a credit quality perspective, the Fund maintained a strong risk management framework, with ~54% of assets invested in government securities and AAA-rated exposures forming the portfolio’s core. This was further diversified with allocations of ~24% in A+ rated instruments and a marginal ~0.01% in AA-rated avenues, while the remaining portion was invested across other Shariah-compliant instruments. The Fund’s weighted average maturity (WAM) stood at 899 days as at end-Jun’25, which subjects the portfolio to elevated exposure against credit and interest rate risk. Moreover, investor concentration remained notably high, with the top ten investors collectively accounting for ~95% of total assets, thereby heightening the Fund’s susceptibility to redemption pressures in the event of sizeable withdrawals.
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 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.