PACRA Maintains Stability Rating of ABL Cash Fund

ABL Cash Fund ("ABL CF" or “The Fund”), a low-risk investment vehicle focused on liquidity and capital preservation, continues to demonstrate resilience by adhering to a conservative investment strategy. The Fund’s portfolio remains anchored in high-quality sovereign instruments and money market tools, ensuring a very strong creditworthiness and immediate liquidity access for investors. The Fund’s asset allocation as of December 2024 reflects a deliberate emphasis on safety and liquidity. Approximately 46.72% of the portfolio is allocated to Government of Pakistan Treasury Bills (T-bills). A further 28.27% is invested in Pakistan Investment Bonds (PIBs). Complementing these holdings, 21.08% is placed in high-quality bank deposits, ensuring immediate liquidity and capital preservation. Marginal allocations include 0.23% to Sukuk for Sharia-compliant diversification, with the residual balance spread across other low-risk avenues to enhance flexibility. In terms of credit quality, the Fund maintains a stringent focus on high-rated instruments, with approximately 94.8% of assets invested in AAA-rated/government securities. Exposure to lower-tier credit is minimal, with only 1.27% allocated to AA+ rated instruments and 3.70% in other short-term, investment-grade avenues. Liquidity management further underscores the Fund’s stability, with a weighted average maturity (WAM) of 58 days ensuring minimal sensitivity to interest rate risk. By prioritizing short-duration government securities and highly liquid bank deposits, the Fund retains ample capacity to meet redemption demands swiftly, even during periods of market stress.
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 365,051 mln at the end of Dec'24.