PACRA Maintains Stability Rating of ABL Income Fund

ABL Income Fund (or the "Fund") is a medium risk profile Fund. The objective of the Fund is to earn competitive risk adjusted rate of return by investing in a blend of short, medium, and long-term fixed income and debt instruments, both within and outside Pakistan. At end-Jun'24, the Fund had allocated ~57.2% of net assets in Bank placements, ~31.3% in TFCs/Sukuks, ~4.0% in PIBs, ~2.7% held in Government backed securities, while the remaining ~4.8% was invested in others. At end Jun'24, most of the investments was held in AA- rated avenues (~37.8), ~34.2% in A+, ~14.1% in Govt.Sec/AAA rated avenues, ~5.9% in AA+, while the remaining was invested in others. 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 436 days, exposing the Fund to very high credit rate 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 9.28%, representing top 10 investors concentration, exposing the Fund to 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.