The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Usama Saeed

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PACRA Maintains Capital Preservation Rating of ABL Special Savings Fund

Rating Type Capital Preservation Rating
(31-May-24 )
(30-Nov-23 )
Action Same Initial
Long Term CP2+ CP2+
Short Term - -
Outlook Stable Stable
Rating Watch - -

ABL Special Savings Fund is an open-end Capital Protected Fund that aims to provide not only its unit-holders capital preservation but competitive regular returns from a portfolio of fixed-income investments in line with the risk tolerance of the Investor. The Fund shall offer multiple Allocation Plans, hereafter, investing in authorized investable avenues. The undermentioned Plans are currently provided under the Fund: i) Special Saving Plan I, ii) Special Saving Plan II, iii) Special Saving Plan III, iv) Special Saving Plan IV, v) Special Saving Plan V, vi) Special Saving plan VI, vii) Special Saving Plan Fixed Return Plan. As the Special Saving Plan Fixed Return Plan has matured in February 2024, the Fund has six remaining plans currently. The duration of the Fund is perpetual; however, the underlying Allocation Plans launched may either have a fixed maturity or be perpetual. At the end of Mar’24, the Fund's average credit quality was ~67% in Govt/AAA, ~16.5% in AA+, and ~12.8% in AA-. The AUMs of the Fund stood at PKR 71,608mln at the end of Mar’24. At the end of Mar'24, the Fund had allocated ~57% invested in government securities (PIBs and T-bills), ~40% in cash deposits, and the remaining in others. The Fund's average duration stood at 67 days at the end Mar’24, exposing the fund to low interest rate risk. The average WAM of the Fund stood at 697 days at the end of Mar’24, and the associated risks are managed through holdings in Government Securities and sufficient liquidity. At the end of Mar’24, the average unit holding pattern of the fund stood at ~63% representing top-ten investor concentration, which exposes the fund to medium level of redemption pressure.
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 203.84bln at the end of Mar'24.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.