PACRA Assigns Stability Rating to ABL Islamic Money Market Fund

ABL Islamic Money Market Fund (or the “Fund”) is a low-risk profile Fund. The objective is to earn competitive returns for its investors by investing in low risk, highly liquid and short duration portfolio consist of shariah compliant bank deposits and money market instruments. They include T-Bills, commercial papers, and certificates of deposits due to their low credit risk, making them suitable for investors seeking stability and preservation of capital. The AUMs of the Fund stood at PKR 408mln at the end Dec’23. The Fund had invested ~99.9% in Banks rated in AAA category at the end Dec’23. The duration and WAM of the Fund stood at 1 day at the end Dec’23, limiting the exposure interest rate risk and credit risk. The top 10 investors concentration of the Fund, at Dec’23 was ~99.19%; exposing the Fund to a very high level of redemption pressure. Redemption pressure is addressed through the maintenance of sufficient liquidity through allocation in banks.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Incorporated in 2007, ABL AMC is a wholly owned subsidiary of Allied Bank Limited (ABL). ABL operates with 1,400 plus branches including 117 Islamic banking branches, 8 Digital/ Self Service branches & 2 overseas branches. ABL AMC possesses licenses for asset management, pension management and investment advisory services. As the leading private sector asset management and investment advisory Company in Pakistan, offerings include a comprehensive range of both Conventional and Shariah Compliant investment solutions across all major asset classes. Assets under management of the Company stood at ~PKR 169.79bln at the end of Dec'23.