PACRA Maintains Stability Rating of ABL Islamic Income Fund

ABL Islamic Income Fund (“ABL IIF” or “the Fund”), a medium-risk profile fund, is designed to provide investors with an opportunity to earn higher income over the medium to long term by investing in a diversified portfolio of money market and debt instruments permissible under Shariah principles. The Fund seeks to balance income generation with adherence to Shariah-compliant investment avenues. As of June 2025, the Fund’s assets under management (AUM) stood at PKR 1.8 billion. The Fund’s asset allocation reflected a diversified mix, with ~40% maintained in cash, ~33% invested in government-guaranteed avenues, ~18% deployed in Sukuks/TFCs, while the remaining portion was invested across other instruments. This structure reflects the Fund’s approach of maintaining liquidity while generating returns through Shariah-compliant exposures. The credit quality of the Fund indicated a broad spread across rating tiers, with ~41% exposure in government securities/AAA-rated avenues, ~28% in A+ rated instruments, ~16% in A1 rated, and the remainder across other investment-grade exposures. This composition highlights the Fund’s allocation in quality instruments while retaining a medium-risk profile. The Weighted Average Maturity (WAM) of the Fund was reported at 412 days as of June 2025, indicating a relatively long maturity profile. This positioning exposes the Fund to greater sensitivity toward interest rate and credit risk, consistent with its medium- to long-term income strategy. The unit holding structure of the Fund indicated moderate concentration, with the top 10 investors collectively accounting for ~49% of outstanding units at end-June 2025. While this introduces some degree of redemption pressure, the Fund’s sizable allocation in cash and liquid avenues provides sufficient capacity to meet withdrawals without compromising 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.