Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has once again affirmed the ‘AA+(f)’ stability rating of the ABL Islamic Money Market Fund, recognizing its low-risk investment strategy and commitment to Shariah-compliant financial instruments.

According to The Pakistan Credit Rating Agency Limited, the ABL Islamic Money Market Fund is designed to offer competitive returns by investing in low-risk, highly liquid, and short-duration Shariah-compliant instruments such as T-Bills, commercial papers, and certificates of deposits. These investments are known for their low credit risk and are preferred by investors focused on stability and capital preservation. As of the end of June 2024, the fund has allocated approximately 78.3% of its investments in AA-rated avenues and 5.6% in AAA-rated avenues, with the remainder spread across other categories.

The majority of the fund’s assets were held in the form of cash and placements with banks, accounting for about 74.8% of its investments, followed by Sukuks which comprised 8.6%. The fund’s Weighted Average Maturity (WAM) stood at 7 days at the end of June 2024, indicating a very low exposure to credit risk due to its short investment horizon.

PACRA notes that the future stability of the fund’s rating is dependent on maintaining its conservative investment approach and compliance with Shariah principles. Any significant changes to its investment policy or deviations from the set rating criteria could potentially impact its stability rating. The ongoing affirmation of the fund’s rating underscores PACRA’s confidence in the fund’s management and its strategic investment policies.