⚡ Flash Summary

ABL Cash Fund (ABL-CF) reported its quarterly financial statements for the period ending September 30, 2025. The fund’s annualized return stood at 9.75% against a benchmark return of 10.66%. AUMs of ABL-CF increased substantially to PKR 60,396.55 million at Sep’25, resulting in a growth of 47.11% from PKR 41,055.17 million at the end of June 2025. The fund had 53.04% exposure in T-bills, 0.34% exposure in TFCs/Sukuks, and 45.99% of the exposure was placed in Cash.

📌 Key Takeaways

• 📈 AUM grew by 47.11% reaching PKR 60,396.55 million.
• 📊 Annualized return of the fund was 9.75%, below the benchmark of 10.66%.
• 🏛️ 53.04% of the fund’s assets are invested in T-bills.
• 💼 0.34% of the fund is invested in TFCs/Sukuks.
• 💰 45.99% of the fund’s exposure was allocated to cash.
• 🇵🇰 Pakistan’s economy is building on stabilization momentum, with inflation averaging 4.2% YoY.
• 📉 September CPI accelerated to 5.6% YoY from 3.0% YoY in August.
• 🏦 SBP maintained the policy rate at 11% reflecting confidence in price stability.
• 🏭 Large-scale manufacturing showed tentative signs of recovery.
• 💰 Liquid FX reserves stood close to US$19.8bn by September.
• ⬆️ S&P upgraded Pakistan’s rating in July 2025, followed by Moody’s in August.
• 🌱 YTD AUMs growth in the open-end mutual fund industry was 7.81%.
• 📊 Headline CPI averaged 4.2% YoY during the quarter, down from 9.2% in 1QFY25.
• ⚠️ Inflation initially moderated, but projected to rise to 5.1-7.0% in September.
• ⭐ Management Quality Rating (MQR) of ABL AMC at ‘AM1’ with a ‘Stable’ outlook.

🎯 Investment Thesis

HOLD. The fund’s AUM growth is positive, but the slightly below-benchmark returns warrant a neutral stance. The high allocation to T-bills and cash provides stability but limits potential upside. Active management to improve returns and a closer tracking of the benchmark are needed for a more positive outlook.