PACRA Maintains the Stability Rating of ABL Islamic Cash Fund

ABL Islamic Cash Fund ("AICF" or "the Fund") is categorized under a low-risk Islamic Money Market Scheme, with the objective of providing competitive returns through investments in low-risk and highly liquid Shariah-compliant money market instruments. As of Mar'26, the Fund's Assets Under Management (AUM) stood at PKR 8,391mln, compared to PKR 16,864mln as of Sep'25 (the last review), reflecting a contraction in fund size amid investor reallocation and prevailing liquidity dynamics within the money market segment. The Fund maintained a highly liquid portfolio composition, with approximately 41% invested in placements with Banks/DFIs, ~38% in cash and cash equivalents, ~11% in Government-backed securities, and ~4% in short-term Islamic Sukuks. The asset allocation underscores the Fund's emphasis on liquidity management, capital preservation, and maintaining flexibility in a changing profit rate environment. From a credit quality perspective, approximately 57% of the portfolio was invested in AA+ rated instruments, while ~33% was allocated to Government securities and AAA-rated avenues. An additional ~4% exposure was maintained in A1 rated instruments. The Fund's credit profile remains adequate and is supported by a substantial concentration in high-quality counterparties and sovereign-backed exposures, consistent with the assigned rating. The Fund's Weighted Average Maturity (WAM) stood at 25 days as of Mar'26, reflecting very low sensitivity to profit rate movements and credit risk. The short-duration profile enhances the Fund's ability to rapidly reprice its portfolio and effectively manage liquidity while preserving capital. In terms of performance, the Fund generated an annualized one-year return of 10.41% as of Mar'26, outperforming its benchmark return of 9.56%. The Fund's ability to deliver above-benchmark returns reflects effective portfolio management, efficient deployment across Shariah-compliant money market avenues, and disciplined execution of its investment strategy while maintaining a conservative risk profile.
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 309bln at the end of Mar'26.