PACRA Holds Steady Rating for ABL Income Fund, Reflecting Balanced Strategy

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the ABL Income Fund, acknowledging its medium-risk profile and strategic allocation that aims to deliver competitive risk-adjusted returns. The Fund’s approach involves investing in a diversified mix of short, medium, and long-term fixed income and debt instruments, both domestically and internationally.

As of June 2025, the ABL Income Fund reported assets under management totaling PKR 4 billion. Its asset allocation strategy included approximately 37% in cash, 22% in Government of Pakistan Treasury Bills, and 14% in Term Finance Certificates (TFCs) and Sukuks, with the remainder spread across other investment avenues. This diversified mix underscores the Fund’s emphasis on income generation while maintaining liquidity.

The Fund’s credit quality profile is diverse, with significant exposure to government securities and AAA-rated avenues at 52%, followed by 13% in A+ rated instruments and 10% in BBB+. This distribution across various rating tiers reflects the Fund’s medium-risk strategy.

The Fund’s Weighted Average Maturity was recorded at 578 days, indicating a long maturity profile. This positions the Fund to capture medium to long-term income opportunities while being sensitive to interest rate and credit risk.

The unit holding structure shows a high concentration, with the top 10 investors holding about 67% of outstanding units by the end of June 2025. Despite the potential pressure from redemptions, the Fund’s allocation in cash and short-term instruments provides a liquidity buffer to manage withdrawals effectively.

Future changes in the investment policy or rating criteria could impact the Fund’s rating, according to PACRA.