PACRA Maintains the Stability Rating of ABL Income Fund

ABL Income Fund ("ABL-IF" or "the Fund") is categorized under a medium-risk profile, with the objective of earning competitive risk-adjusted returns through investment in a blend of short, medium, and long-term fixed income and debt instruments, both within and outside Pakistan. The Fund's strategy involves active allocation across the credit and duration spectrum, making it suitable for investors seeking above-money-market returns while accepting moderate credit and interest rate risk. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 4,155mln, compared to PKR 3,273mln as of the last review, reflecting a growth in fund size during the review period. In terms of asset allocation, approximately 60% of the portfolio was invested in cash, 16% in TFCs/STS, 16% in Treasury Bills, and 7% in commercial paper, with negligible PIB exposure, reflecting a well-structured fixed income portfolio with a strong liquidity emphasis. From a credit quality perspective, approximately 76% of the Fund's assets were invested in Government Securities and AAA rated instruments, ~7% in AA+ rated avenues, ~2% in AA rated instruments, ~6.8% in A1+ rated instruments, ~7.5% in A1 rated instruments, and ~4% in A+ rated instruments, with the remainder in other exposures. The overall credit profile is considered strong and fully compliant with the assigned rating criteria. The Fund's Weighted Average Maturity (WAM) stood at 138 days as of Jun'26, reflecting moderate sensitivity to interest rate movements consistent with the Fund's medium-risk income mandate. Meanwhile, the unit holding pattern reflects a high degree of concentration, with the top 10 investors accounting for ~86% of the Fund's total holdings, of which the AMC's own sponsor holding represents ~77% of net assets, a holding that is generally considered stable and long-term in nature, providing a highly captive and resilient anchor to the Fund's investor base. The Fund's predominantly cash-based portfolio positioning and short WAM further reinforce its ability to meet any redemption requirements swiftly, providing adequate comfort despite the elevated concentration level. In terms of performance, the Fund delivered a one-year return of 9.88% as of Jun'26, against a benchmark return of 10.61%, reflecting an underperformance of approximately 73 basis points.
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 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 306bln at the end of Jun'26.