PACRA Reaffirms ABL Cash Fund’s Stability Rating

Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the ABL Cash Fund, maintaining its position as a low-risk investment option. The Fund is designed to offer capital preservation and liquidity through a cautious investment approach.

The ABL Cash Fund’s portfolio is heavily weighted towards sovereign instruments and money market avenues, ensuring strong credit quality and the ability to meet redemptions on demand. As of June 2025, the Fund’s assets under management were reported at PKR 41 billion.

The Fund’s asset allocation strategy reflects its defensive stance, with approximately 72% invested in Government of Pakistan Treasury Bills, 12% held in cash placements for liquidity, and the remaining 15% in other short-term avenues for portfolio flexibility. This structure aligns with the Fund’s mandate to maintain liquidity while considering returns.

The credit quality of the Fund is bolstered by 77% exposure in AAA-rated or government securities and 7% in AA+ rated instruments. The remaining 15% is allocated to other high-quality investment-grade avenues, adhering to a conservative credit profile.

The Weighted Average Maturity of the Fund, at 136 days as of June 2025, indicates its focus on short-term instruments, thus limiting sensitivity to interest rate and credit risk. The unit holding structure shows moderate concentration, with the top 10 investors accounting for 53% of outstanding units. Despite this, the Fund’s significant investments in Treasury Bills and cash ensure sufficient liquidity to meet withdrawal needs.

Looking ahead, any significant changes in investment policy or rating criteria could impact the assigned rating.