ABL Money Market Fund Maintains Stability Rating from PACRA

Strategic Insights -

The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the ABL Money Market Fund (ABL MMF), underscoring its commitment to preserving capital while delivering competitive returns. The Fund remains focused on liquidity and stability through investments in high-quality money market instruments and bank deposits. As of June 2025, the ABL MMF's assets under management totaled PKR 27.5 billion, with a conservative allocation of approximately 69% held in cash and 27% in Government of Pakistan Treasury Bills (T-Bills).

Key Takeaways:

  • The ABL MMF has a low-risk profile, focusing on liquidity and stability through investments in high-quality money market instruments and bank deposits.
  • As of June 2025, the Fund's assets under management totaled PKR 27.5 billion, with a conservative allocation of approximately 69% in cash and 27% in Government of Pakistan Treasury Bills (T-Bills).
  • The Fund's credit quality is predominantly high, with about 96% invested in government securities and AAA-rated avenues, and 1% in A1-rated instruments.
  • The Fund's Weighted Average Maturity (WAM) stood at 23 days as of June 2025, indicating its short-duration nature and limited exposure to interest rate and credit risks.
  • The unit holding structure revealed moderate concentration, with the top ten investors accounting for approximately 51% of outstanding units by the end of June 2025.
  • Despite potential redemption pressures, the Fund's focus on liquid investments ensures the ability to accommodate withdrawals without affecting portfolio stability.
  • PACRA noted that any significant changes in the Fund's investment policy or the rating criteria could influence the Fund's stability rating in the future.

Statistics:

  • PKR 27.5 billion: Assets under management as of June 2025.
  • 69%: Allocation held in cash as of June 2025.
  • 27%: Allocation held in Government of Pakistan Treasury Bills (T-Bills) as of June 2025.
  • 96%: Credit quality invested in government securities and AAA-rated avenues as of June 2025.
  • 1%: Allocation in A1-rated instruments as of June 2025.
  • 23 days: Weighted Average Maturity (WAM) as of June 2025.
  • 51%: Allocation in the top ten investors as of June 2025.

Sources:

  • Pakistan Credit Rating Agency Limited (PACRA)
  • ABL Money Market Fund (ABL MMF)
  • Government of Pakistan