ABL Funds, one of the leading Asset Management Company in Pakistan is pleased to announce that VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating for ABL Cash Fund (ABL CF) to ‘AA+ (f)’ from ‘AA (f)’ on January 20, 2020. Previous Rating action was announced on January 16, 2018.
The rating upgrade incorporates change in the investment policy statement (IPS) of the fund whereby exposure will primarily be taken in ‘AA+’ or above rated exposures coupled with reduction in the duration of the fund from 90 to 60 days. The actual credit quality of exposures remained in line with VIS criteria and the revised IPS. There was also no breach in duration of the fund during the review period. Net Assets of the fund increased sizably by end FY19 and Retail portion of the fund also witnessed and increase. The major portion of the investment comprised unrelated corporates as at end FY19.
Launched in July 2010, ABL CF operates as a money market fund. ABL Cash Fund aims to provide the investors with stable returns and maximum capital preservation by investing in high quality short term instrument with issue or entity rating of minimum ‘AA’ therefore avoiding volatility of both long-term fixed income securities and stock markets. The Fund’s primary objective is to provide investors consistent returns with a high level of liquidity, through a blend of money market and sovereign debt instruments.
ABL Cash Fund is suitable for institutional as well as retail investors looking for optimal and stable returns over the short term minimizing the risks while maximizing liquidity. The annualized return of ABL CF for the last one year was 11.97% (Jan 2019- Dec 2019) while the Benchmark’s return for the corresponding period was 11.39%. The Assets under Management of ABL CF stood at Rs. 23.37 Billion (as on Dec 31, 2019).
