PACRA Maintains the Stability Rating of ABL Money Market Fund

ABL Money Market Fund (“ABL MMF” or the “Fund”) is a low-risk money market scheme, with the objective to provide competitive returns to investors while maintaining high liquidity, primarily through investments in bank deposits and money market instruments. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at PKR 8,275mln, down from PKR 27,546mln as of Jun’25 (the last review). The significant reduction in fund size is largely attributable to investor redemptions amid monetary policy easing, which resulted in lower yields in the money market, prompting some investors to reallocate to alternative investment options, while the Fund continued to maintain a high-quality and liquid portfolio. In terms of asset allocation, approximately ~50% of the portfolio was held in cash, ~29% in Treasury Bills, ~12% in Pakistan Investment Bonds (PIBs), and ~9% in placements with Banks/DFIs. The allocation reflects the Fund’s focus on liquidity and short-term instruments while earning competitive market returns. From a credit quality perspective, the Fund maintained a strong profile, with approximately ~91% of assets invested in AAA-rated instruments and Government securities and ~9% in AA-rated instruments, ensuring minimal credit risk. As of Dec’25, the Fund’s Weighted Average Maturity (WAM) stood at 40 days, indicating low sensitivity to interest rate and credit risk, consistent with the Fund’s low-risk mandate. The unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~27% of total units. This level of concentration presents low redemption risk, supported by the Fund’s highly liquid asset base. In terms of performance, the Fund delivered a one-year annualized return of 10.47% as of Dec’25, slightly below the benchmark return of 11.07%, reflecting the impact of lower market yields amid easing monetary policy, while maintaining a highly liquid and high-quality portfolio.
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 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 287bln at the end of Dec'25.