The Pakistan Credit Rating Agency Limited
Press Release


Madiha Sohail

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PACRA Assigns Initial Stability Rating to ABL Cash Fund

Rating Type Stability Rating
(17-Nov-23 )
Action Initial
Long Term AA+(f)
Short Term -
Outlook Stable
Rating Watch -

ABL Cash Fund (or the “Fund”) is a low-risk profile fund. The objective of the Fund is to provide investors, with consistent returns with a high level of liquidity, through a blend of money market and sovereign debt instruments. The AUMs of the Fund stood at PKR 51,452mln at the end of Oct’23 (Dec’22: PKR 38,384mln). At the end of Oct’23, the credit quality of the Fund was ~82.4% in Govt/AAA rated, ~15.2% in AA+, and remaining in others. The Fund had invested ~78.2% in PIBs, 15.54% in Cash, ~4% in T-bills, and the remaining in others. The duration and the WAM of the Fund stood at 54 days, limiting the exposure to interest rate and credit risk at the end of Oct’23. The unit holding pattern of the Fund stood at ~41% representing top ten investor concentration at the end of Oct’23, keeping the redemption pressure low. Furthermore Strong credit quality depicts a sound liquidity profile. During the month of Oct’23, ABL Cash Fund posted an annualized return of 19.82% against the benchmark return of 19.40%, thereby overperforming the benchmark by 42 bps however, it remained in line with the industry average.
Going forward, the Fund intends to maintain its current asset allocation. Material changes in the fund's asset allocation strategy, impacting its credit quality would affect the rating.

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 148bln at the end of Oct'23.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.