PACRA Maintains the Stability Rating of ABL Islamic Money Market Fund

ABL Islamic Money Market Fund ("ABL-IMMF" or "the Fund") is categorized under a low-risk profile, with the objective of providing competitive returns to its investors by investing in a low-risk, highly liquid, and short-duration portfolio of Shariah compliant bank deposits and money market instruments. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 52,358mln, compared to PKR 41,956mln as of Dec'25 (the last review), reflecting a growth during the review period, indicative of strong and growing investor confidence in the Fund's Shariah compliant money market offering. In terms of asset allocation, approximately 87% of the portfolio was invested in cash, ~6% in Government Guaranteed instruments, ~5% in short-term Islamic sukuks, and ~2% in other eligible instruments, reflecting a near-exclusively liquid portfolio positioning consistent with the Fund's low-risk money market mandate. From a credit quality perspective, approximately 6% of the Fund's assets were invested in Government Securities and AAA rated instruments, ~86% in AA+ rated instruments, ~1% in A+ rated instruments, ~5% in A1 rated instruments, and ~2% in unrated exposures. The Fund's Weighted Average Maturity (WAM) stood at 25 days as of Jun'26, reflecting very limited sensitivity to interest rate movements and reinforcing the Fund's very strong liquidity position. This short WAM profile enables the Fund to reprice its portfolio rapidly in response to changes in the monetary policy environment, thereby protecting unit holders from adverse interest rate movements. Meanwhile, the unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~41% of the Fund's total holdings, thereby exposing the Fund to moderate redemption risk; however, the Fund's highly liquid asset allocation and very short WAM profile provide very strong comfort regarding its ability to meet any potential redemption requirements swiftly and in an orderly manner. In terms of performance, the Fund delivered a one-year return of 10.34% as of Jun'26, against a benchmark return of 9.37% and a peer group average of 9.98%, reflecting an outperformance of approximately 97 basis points over the benchmark and 36 basis points over the peer group. This above-benchmark and above-peer outcome is considered a commendable result, demonstrating the Fund's very strong capacity to generate competitive Shariah compliant risk-adjusted returns while maintaining its conservative, liquidity-first investment discipline throughout the review period. However, while the upper end of the credit quality spectrum still remains short of the requisite threshold under the assigned rating criteria, the Fund continues to be placed on Rating Watch until full compliance with the assigned rating criteria is achieved.
Going forward, portfolio rebalancing in line with the assigned rating benchmarks remains critical, and any material change in asset allocation affecting credit quality, liquidity, or interest rate exposure will remain a key rating consideration.

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 306bln at the end of Jun'26.