Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of ABL Money Market Fund
Rating Type | Stability Rating | |
Current (23-Oct-24 ) |
Previous (22-Apr-24 ) |
|
Action | Maintain | Initial |
Long Term | AA+(f) | AA+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
ABL Money Market Fund (or the “Fund”) is a low-risk profile Fund. The objective is to earn competitive returns for its investors while preserving capital to the possible extent, by investing primarily in 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 Fund's asset quality is good and in line with the rating criteria at end of Jun'24. As of the end of Jun'24, Fund's investment was ~99.1% in AAA/Government Securities, with the reminder invested in other categories. At the end of Jun'24, most investment was held in T-bills (~85.5%), followed by PIB's (~6.1%), Term Finance Certificate (~4.9%) and remaining was invested in others. The WAM of the Fund stood at 62 days at the end Jun’24, exposing low credit risk.
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 199.8bln at the end of Jun'24