PACRA Maintains Stability Rating of ABL Money Market Fund

ABL Money Market Fund (“ABL MMF” or “the Fund”), a low-risk profile fund, is structured to preserve capital while generating competitive returns through investments in bank deposits and high-quality money market instruments. The Fund’s strategy remains centered on maintaining liquidity and stability, with exposure confined to short-duration assets carrying limited credit and market risk. As of June 2025, the Fund’s assets under management (AUM) stood at PKR 27.5 billion. The Fund’s allocation reflected its conservative stance, with ~69% maintained in cash, ~27% invested in Government of Pakistan Treasury Bills (T-Bills), and ~1% allocated to Sukuks/TFCs, while the remaining portion was deployed across other short-term avenues to retain operational flexibility. This structure reinforces the Fund’s mandate of capital preservation while sustaining liquidity. The credit quality of the Fund was dominated by top-tier exposures, with ~96% invested in government securities/AAA-rated avenues, ~1% in A1-rated instruments, and the balance distributed across other holdings. This composition highlights the Fund’s reliance on high-quality assets in line with its low-risk profile. The Weighted Average Maturity (WAM) of the Fund was reported at 23 days as of June 2025, reflecting its short-duration nature and minimal sensitivity to interest rate and credit risk. The short WAM ensures that the Fund remains flexible to reinvest maturities under prevailing market conditions. The unit holding structure of the Fund indicated moderate concentration, with the top 10 investors collectively representing ~51% of outstanding units at end-June 2025. While this creates some degree of redemption pressure, the Fund’s dominant allocation in liquid avenues provides sufficient capacity to meet withdrawals without compromising portfolio stability.
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 273bln at the end of Jun'25.