The Pakistan Credit Rating Agency Limited
16-Jun-25
Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of ABL Financial Sector Fund
| Rating Type | Stability Rating | |
|
Current (16-Jun-25 ) |
Previous (23-Oct-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
ABL Financial Sector Fund ("ABL FSF" or "the Fund"), a moderate-risk investment solution focused on capital preservation and steady growth, continues to deliver consistent results through its disciplined approach to portfolio construction. The Fund maintains a prudent balance between safety, liquidity, and measured exposure to Pakistan's financial sector. As of December 2024, the Fund's asset allocation reflects its commitment to stability, with 66.49% invested in bank deposits from high-quality financial institutions, ensuring strong liquidity and capital protection. An additional 26.12% is allocated to Pakistan Investment Bonds (PIBs), providing stability through sovereign-backed instruments. The remaining 7.39% is strategically distributed across Non-Banking Financial Companies (5.86%) and Microfinance Banks, allowing for diversification while maintaining strict risk controls. The Fund maintains good credit quality standards, with 48.20% of its portfolio in A+ rated instruments, followed by 26.43% in government securities and AAA rated assets, and 23.84% in A rated instruments, ensuring the credit quality aligns with the assigned rating. With a weighted average maturity (WAM) of 150 days, the Fund balances stability with flexibility, allowing it to navigate changing market conditions effectively.
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 365,051 mln at the end of Dec'24.