PACRA Assigns Initial Stability Rating of ABL Islamic Cash Fund

ABL Islamic Cash Fund (or the “Fund”) is a low-risk profile Fund. The objective of the Fund is to provide competitive returns by investing in low-risk and highly liquid Shariah-compliant money market instruments. The AUMs of the Fund stood at PKR 29,127mln at the end of Oct’23 (Dec’22: PKR 21,559mln). As of the end of Oct'23, the Fund's credit quality was ~10.7% in AAA, ~17.9% in double AA+, ~66.6% in double AA, and remaining in others. The Fund had invested ~54% in Cash deposits, ~33.4% in placements with DFI/Banks, ~6% in Islamic Sukuks, and the remaining in others. While represented by the client, the credit quality of the fund was further improved which is ~37.5% in Government Securities/AAA, and ~36.1% in AA+.
The duration and the WAM of the Fund stood at 17 days at the end of Oct’23, limiting the exposure to interest rate and credit risk. The unit holding pattern of the Fund stood at ~68%, representing the top ten investor concentration. During the month of Oct’23, ABL Islamic Cash Fund posted an annualized return of 19.16% against the Benchmark return of 7.30% thereby outperforming the Benchmark by 1,186 bps.
Going forward, The compliance with the credit rating quality criteria for the assigned rating would remain crucial.

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.