PACRA Maintains Stability Rating of ABL Government Securities Fund

ABL Government Securities Fund (or the 'Fund') is a moderate-risk profile Fund. The objective of the Fund is to deliver optimal risk-adjusted returns by investing mainly in a mix of short to long-term Government Securities and other debt Instruments. The Fund had invested ~47.83% in PIBs, ~18.66% in bank placements, and ~33.51% in other avenues. At the end of Dec'23, the credit quality of the Fund was 83.4% in the AAA category and 5.3% in the AA- category. The duration of the Fund stood at 231 days at the end of Dec’23, since the fund had invested in fortnightly floaters, the exposure to interest rate risk is limited. The WAM of the Fund stood at 258 days at the end of Dec’23 exposing high credit risk. The credit risk would remain manageable since the investment is in Government securities. At the end of Dec’23, the unit holding pattern of the Fund stood at 84.35%, representing top ten investor concentration, keeping the redemption pressure very high. However, on the back of a strong liquidity profile, the redemption pressure would be manageable.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Incorporated in 2007, ABL AMC is a wholly owned subsidiary of Allied Bank Limited (ABL). ABL operates with 1,400 plus branches including 117 Islamic banking branches, 8 Digital/ Self Service branches & 2 overseas branches. ABL AMC possesses licenses for asset management, pension management and investment advisory services. As the leading private sector asset management and investment advisory Company in Pakistan, offerings include a comprehensive range of both Conventional and Shariah Compliant investment solutions across all major asset classes. Assets under management of the Company stood at ~PKR 169.79bln at the end of Dec'23.