Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of ABL Income Fund, categorizing it under a medium-risk profile. The Fund aims to achieve competitive risk-adjusted returns through investments in a combination of fixed income and debt instruments both domestically and internationally. As of June 26, the Fund's Assets Under Management (AUM) showed an increase to PKR 4,155 million from PKR 3,273 million in the previous review.

According to The Pakistan Credit Rating Agency Limited, the Fund's portfolio allocation is designed to provide a balance between risk and liquidity, with about 60% invested in cash and the remaining distributed across various financial instruments including TFCs/STS, Treasury Bills, and commercial paper. The credit quality of the Fund remains robust, with 76% of assets in Government Securities and AAA-rated instruments, ensuring adherence to the assigned rating criteria.

The Weighted Average Maturity (WAM) of the Fund is reported at 138 days, aligning with its medium-risk mandate by showcasing moderate sensitivity to interest rate changes. The investor base of the Fund is significantly concentrated, with the top 10 investors holding about 86% of total assets, including a substantial sponsor holding by the Asset Management Company.

While the Fund's performance showed a one-year return of 9.88% as of June 26, this was slightly below the benchmark return of 10.61%, marking an underperformance of 73 basis points. Future adjustments in investment policy or adherence to rating criteria could potentially impact the Fund's rating.