PACRA Maintains the Stability Rating of ABL Islamic Cash Fund

ABL Islamic Cash Fund (or the "Fund") is an open-ended 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 Fund’s asset quality is good and in line with the rating criteria at the end of Jun’24. As of the end of Jun’24, Fund’s investment was ~58.9% in AA rated avenue. ~31.9% in AA+ rated avenue, ~7.2% in AAA rated, with remainder invested in other categories. At the end of Jun'24, most of the investments was held in DFI (~41.49%) followed by banks in the form of cash (~36.88%), short term sukuk (~18.41%) and remaining was invested in others. The WAM of the Fund stood at 43 days at the end Jun’24, exposing the Fund to credit risk. At the end of Jun'24, the top eight investor concentration stood at ~18.42%, exposing the Fund to low redemption pressure.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on 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 199.8bln at the end of Jun'24.