PACRA Upgrades the Stability Rating of ABL Cash Fund

ABL Cash Fund (“ABL-CF” or “the Fund”) is categorized under a low-risk profile, with the objective of providing investors stable returns and high liquidity through a mix of money market and sovereign debt instruments. As of Jun’26, the Fund’s Assets Under Management (AUM) stood at PKR 65,595mln, compared to PKR 66,497mln as of the last review (Dec’25), reflecting a marginal contraction in fund size during the review period, consistent with the broader contraction in the money market category’s AUM. In terms of asset allocation, approximately 66% of the portfolio was invested in cash, 32% in Treasury Bills, ~1% in TFCs/Sukuk, and ~0.4% in commercial paper. The allocation reflects a highly liquid strategy with predominant exposure to short-term, prime money market instruments, consistent with the Fund’s emphasis on liquidity. From a credit quality perspective, approximately 98% of the Fund’s assets were invested in Government Securities and AAA rated instruments, with ~0.84% in AA/A1 rated instruments and ~1% in unrated exposures. The dominant sovereign and AAA allocation places the portfolio at the highest end of the credit quality spectrum, indicating an exceptional credit profile that is fully compliant with the criteria for the AAA rating. As of Jun’26, the Fund’s Weighted Average Maturity (WAM) stood at 32 days, signifying minimal exposure to interest rate and credit risk, sitting comfortably within the AAA maturity bandwidth and underscoring the Fund’s superior liquidity position. The unit holding pattern reflects a low degree of concentration, with the top 10 investors accounting for ~33% of total holdings, diversified across corporate and institutional investors with no single investor dominating the base. Moreover, potential redemption pressures are contained by the Fund’s short WAM and highly liquid asset mix, with cash constituting approximately 66% of the portfolio, thereby ensuring sufficient liquidity to meet redemption requirements in a timely and orderly manner. In terms of performance, the Fund delivered a one-year return of 10.37% as of Jun’26, compared to the benchmark return of 10.73%, reflecting a marginal underperformance of approximately 36 basis points. While marginally below the benchmark, the Fund’s return remains broadly aligned with market yields, supported by its conservative asset allocation and the highest credit quality. The rating upgrade reflects the Fund’s sustained liquidity strength, short duration profile, and consistent maintenance of the highest credit quality across its asset allocation.
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 306bln at the end of Jun'26.