Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced its decision to maintain the stability rating of the ABL Islamic Income Fund, affirming the fund's commitment to a medium-risk investment strategy that aligns with Islamic financial principles. The fund's portfolio remains diversified across Shariah-compliant instruments, emphasizing capital growth and stability.

As of December 31, 2024, the ABL Islamic Income Fund had allocated 50.52% of its assets to government-guaranteed securities, providing a solid foundation in line with Shariah compliance. The fund also placed 32.42% of its investments in bank deposits from recognized Islamic financial institutions, ensuring liquidity while adhering to Islamic requirements.

Additionally, the fund has diversified its portfolio with a 12.50% allocation in Sukuks, which are Islamic financial certificates, and 4.56% in other permissible instruments, allowing for flexibility within its investment framework. The fund's disciplined approach to credit quality is evidenced by 53.32% of its assets being invested in AAA-rated and government securities, forming the core of its risk management strategy.

The fund also includes 28.76% in A+ rated instruments, 8.86% in A1 rated securities, and smaller allocations in AA- and AA rated avenues, all selected through rigorous Shariah-compliant credit analysis. The weighted average maturity of the fund's portfolio stood at 653 days, supporting its medium- to long-term investment horizon.

PACRA highlighted that any significant changes in the fund's investment policy or adherence to rating criteria could impact its current ratings. The fund remains focused on navigating various market cycles while maintaining its commitment to Shariah principles and capital preservation.