PACRA Maintains Stability Rating of ABL Islamic Cash Fund

ABL Islamic Cash Fund ("ABL ICF" or "The Fund") is positioned as a low-risk profile money market solution, structured to deliver competitive Shariah-compliant returns with a focus on capital preservation and prudent liquidity management. The fund primarily invests in short-duration, high-credit-quality Islamic money market instruments, aligning with the objectives of investors seeking efficient cash deployment within a conservative risk framework. As of end-December 2024, the fund's asset allocation reflected a liquidity-centric strategy, with approximately 45% held in cash, 44% deployed in placements with Islamic banks and DFIs, and 7% allocated to short-term Islamic Sukuks. The remaining exposure was diversified across other Shariah-compliant avenues, ensuring adherence to the fund’s mandate while maintaining portfolio flexibility. On the credit quality front, the portfolio was anchored by a balanced mix of high-grade instruments, comprising 34% in AAA/government securities, 12% in AA+, and 43% in AA-rated exposures. A marginal allocation of around 7% was maintained in A1-rated and other compliant assets, aimed at yield enhancement without significantly altering the fund’s risk profile. The Weighted Average Maturity (WAM) stood at 28 days, reinforcing the fund’s low-duration stance and minimal exposure to interest rate and credit spread volatility,
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 365bln at the end Dec'24.