Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced the retention of the stability rating for the ABL Islamic Money Market Fund (ABL-IMMF), reflecting its continued low-risk profile and capacity to deliver competitive returns through a Shariah-compliant investment strategy. The Fund, characterized by a substantial increase in assets and solid liquidity, reported an annualized year-to-date return of 9.71% as of December 2025, outperforming both its benchmark and peer averages.

According to PACRA, the Fund's Assets Under Management (AUM) rose by approximately 51% during the review period, reaching PKR 41,956 million by December 2025. This growth indicates strong investor confidence in its Shariah-compliant offerings. The Fund's portfolio, primarily invested in cash and bank placements, demonstrates its focus on maintaining high liquidity. Credit quality analysis shows a conservative investment approach, with a significant portion of assets in AAA and AA+ rated instruments. The Fund's Weighted Average Maturity stood at 16 days, underscoring its limited sensitivity to interest rate fluctuations.

Despite the Fund's positive performance, it remains on Rating Watch due to some credit quality aspects not fully meeting rating criteria. Future portfolio rebalancing aligned with rating benchmarks will be crucial, with any changes in asset allocation impacting credit quality, liquidity, or interest rate exposure being key considerations for the rating's future stability.