PACRA Maintains Stability Rating of ABL Islamic Income Fund

ABL Islamic Income Fund (or the "Fund") is a medium risk profile Fund. The objective of this scheme is to provide investors with an opportunity to earn higher income over the medium to long-term by investing in a diversified portfolio consisting of different money market and debt instruments permissible under the Shariah principles. At end Jun'24, the Fund had invested ~62.2% in Bank Placements, ~19.9% in Government Backed Securities, ~9.5% in corporate sukuks, while the remaining ~8.5% was invested in others. At end Jun'24, most of the investments was held in A+ rated avenues ( ~58.9%), ~21.6% was placed in Govt.Sec/AAA rated, ~9.61% in AA-, while the remaining was invested in other rated avenues. At end Jun'24, the duration of the Fund stood at 1 day, limiting the exposure to interest rate risk. The WAM of the Fund stood at 413 days, exposing the Fund to very high level of credit risk. However, credit risk is managed through placements in high-rated avenues At end Jun'24, the unit holding pattern of the Fund stood at 3.66%, representing top 10 investors concentration, hence giving very low level of redemption pressure.
Going forward, any material changes in the investment policy and 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 199.8bln at the end of Jun'24.