PACRA Maintains Stability Rating of ABL Islamic Money Market Fund

The ABL Islamic Money Market Fund ("ABL IMMF" or "The Fund") continues to deliver stable returns while preserving capital through its investment in high-quality, short-term Shariah-compliant instruments. As a low-risk investment solution, the Fund provides investors with liquidity and consistent performance while strictly adhering to Islamic principles. The Fund's December 2024 portfolio allocation demonstrates its balanced approach to risk management and liquidity. Nearly half of the assets (46.47%) are invested in money market placements, offering stability and immediate access to funds. Bank deposits account for 32.18% of the portfolio, placed with reputable Islamic financial institutions to ensure safety of capital. The Fund maintains an 11.60% allocation to Sukuks, providing Shariah-compliant diversification, with the remainder invested in other approved instruments to enhance portfolio flexibility. Credit quality remains a key focus, with 45.79% of assets held in AAA-rated instruments and government securities that form the core of the portfolio. The Fund complements this with 31.46% in AA-rated avenues and 10.08% in AA+ instruments, all selected through stringent screening processes. A limited 11.60% allocation to A1-rated exposures reflects the Fund's careful approach to maintaining quality while seeking appropriate returns. With a Weighted Average Maturity (WAM) of 76 days, the Fund continues to maintain a short-duration profile, allowing it to respond effectively to shifting market dynamics while ensuring a high degree of liquidity.
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 365,051 mln at the end of Dec'24.