The Pakistan Credit Rating Agency Limited
Press Release


Hassaan Ahmad

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PACRA Maintains Stability Rating of ABL Cash Fund

Rating Type Stability Rating
(17-May-24 )
(17-Nov-23 )
Action Maintain Initial
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

ABL Cash Fund (or the “Fund”) is a low-risk profile fund. The objective of the Fund is to provide investors with consistent returns with a high level of liquidity, through a blend of money market and sovereign debt instruments. The AUMs of the Fund stood at PKR 47,893mln at the end of Dec’23. At the end of Dec’23, the allocation of net assets was ~10.92% in Govt. Securities, ~28.43% in Bank placements, and ~61.21% in other avenues. At the end of Dec'23, the credit quality of the Fund was 70% in the AAA category and 22% in the AA+ category. The duration and the WAM of the Fund stood at 17 days, limiting the exposure to interest rate and credit risk at the end of Dec’23. The unit holding pattern of the Fund stood at ~41% representing the top ten investor concentration at the end of Dec’23, keeping the redemption pressure medium. Furthermore, strong credit quality depicts a sound liquidity profile. During the month of Dec’23, ABL Cash Fund posted an annualized return of 21.84% against the benchmark return of 21.43%, thereby overperforming the benchmark by 41 bps however, it remained in line with the industry average.
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 asset management, pension management, and investment advisory services licenses. 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 169bln at the end of Dec'23.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.