Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has sustained its ‘AA+(f)’ stability rating for the ABL Islamic Cash Fund, emphasizing its consistent performance in maintaining a low-risk and highly liquid investment portfolio.

According to The Pakistan Credit Rating Agency Limited, the ABL Islamic Cash Fund aims to deliver competitive returns through investments in Shariah-compliant, low-risk money market instruments. The fund’s asset quality remains strong, aligning with PACRA’s stringent rating criteria as of the end of June 2024. The fund’s investments are diversified, with approximately 58.9% in AA-rated avenues, 31.9% in AA+ rated avenues, and 7.2% in AAA-rated securities, with the remainder distributed among other categories.

Most of the fund’s assets were placed in development financial institutions (DFIs), which accounted for about 41.49% of the investment portfolio, followed by cash holdings in banks at 36.88%, and short-term sukuks at 18.41%. The Weighted Average Maturity (WAM) of the fund stood at 43 days at the end of June 2024, demonstrating a controlled exposure to credit risk while optimizing liquidity.

PACRA also noted the fund’s investor base, indicating that the top eight investors constitute approximately 18.42% of the total fund, which implies a low risk of sudden large withdrawals or redemption pressures. The agency asserts that the ABL Islamic Cash Fund’s stable rating reflects its prudent management and effective investment strategy.

The future outlook on the fund’s stability rating remains contingent upon continuous adherence to its investment policy and the criteria set by PACRA. Any significant changes in these areas could influence the fund’s future ratings.