⚡ Flash Summary

ABL Islamic Stock Fund (ABLISF) reported its quarterly financial statements for the period ended September 30, 2025. The fund’s AUM increased significantly by 45.83% to PKR 4,568.21 million, compared to PKR 3,132.41 million in the previous quarter. The fund posted a return of 27.79%, underperforming against the benchmark return of 33.20%. The management quality rating was assigned ‘AM1’ by PACRA. The equity market experienced a rally, but recent floods could cause a rise in inflation.

📌 Key Takeaways

• 📈 AUM increased by 45.83% QoQ, reaching PKR 4,568.21 million.
• 📉 Fund return of 27.79% underperformed the benchmark return of 33.20%.
• ⭐ Management Quality Rating (MQR) affirmed at ‘AM1’ by PACRA.
• ✔️ The KMI-30 index saw a rally, rising 33.2% QoQ.
• ✔️ Investor confidence improved due to credit rating upgrades by S&P and Moody’s.
• ✔️ SBP reported a record profit of PKR 2.5 trillion.
• ✔️ The fiscal deficit stood at 5.4% of GDP.
• ✔️ FX reserves averaged USD 14.4 billion.
• ⚠️ Market faced foreign outflows of USD 132 million.
• ⚠️ New fiscal measures included PKR 340 billion in extra taxes and fuel price hikes.
• ⚠️ FBR revenue missed targets by PKR 200 billion.
• ⚠️ Inflation averaged 4.2% YoY.
• ⚠️ Recent floods across the country could contribute to a rise in inflation.

🎯 Investment Thesis

HOLD. The ABL Islamic Stock Fund has demonstrated significant AUM growth, reflecting investor confidence, but the underperformance against its benchmark warrants a hold rating. The potential inflationary pressure could dampen future returns. More analysis is needed.