Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of ABL Islamic Income Fund, categorizing it under a medium-risk profile. The Fund, designed to offer investors higher income over the medium to long-term through a Shariah-compliant diversified portfolio, has shown growth in its Assets Under Management (AUM), increasing from PKR 1,592 million to PKR 1,763 million as of June 26. This rise indicates a growing investor interest in the Fund's income proposition.

According to PACRA, ABL Islamic Income Fund's asset allocation includes approximately 45% in cash, 32% in Sukuks, 17% in Government Guaranteed instruments, and about 5% in other receivables. The credit quality of the Fund remains robust, with 24% of assets in Government Securities and AAA rated instruments and a significant portion in AA+/A1+ rated instruments. The Fund's weighted average maturity is 60 days, indicating limited sensitivity to interest rate changes.

The unit holding pattern shows moderate concentration, with the top 10 investors holding around 52% of the total. This is supported by a stable base of provident and gratuity funds. Although the Fund delivered a one-year return of 8.79% as of June 26, it underperformed its benchmark by 64 basis points. Future changes in investment policy or compliance with rating criteria could impact the Fund's stability rating.