PACRA Maintains Stability Rating of ABL Financial Sector Fund

ABL Financial Sector Fund (or the 'Fund') is a moderate-risk profile Fund. The objective is to earn competitive risk-adjusted rate of return by investing in a blend of short, medium, and long-term fixed income and debt instruments. The Fund shall invest primarily in short-duration instruments and may even hold some or all of its assets in cash for the purpose of maintaining liquidity. The Fund's asset quality is adequate and in line with the rating criteria at the end of Jun'24. As of the end of Jun'24, Fund's investment was ~67.62% in A+ rated avenue, ~22.63% in AAA/Government securities, ~7.39% in A rated category, with the reminder invested in other categories. At the end of Jun'24, most investment was held in Banks in the form of cash and placement (~67.91%) followed by PIB's (~19.16%), NBFC's/MFB (~7.39%), T-bills (~3.18%) and remaining was invested in others. The WAM of the Fund stood at 240 days at the end Jun’24, exposing high credit risk. At the end of Jun'24, the top eight investor concentration stood at ~18.42% exposing the Fund to low redemption pressure.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.

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 199.8bln at the end of Jun'24