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 Government Securities Fund
| Rating Type | Stability Rating | |
|
Current (16-Jun-25 ) |
Previous (24-Dec-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
ABL Government Securities Fund ("ABL GSF" or "The Fund") continues to demonstrate its low-risk investment approach through a concentrated portfolio of high-quality government securities. The Fund's strategy emphasizes stability, liquidity, and capital preservation, aligning with its mandate to invest primarily in sovereign debt instruments. As of December 2024, the Fund's portfolio composition reflects its conservative positioning, with 66.71% allocated to Pakistan Investment Bonds (PIBs) and 20.47% in Treasury Bills (T-bills), ensuring a strong sovereign foundation. The remaining allocation includes 9.53% in cash placements for liquidity management and 0.14% in Sukuk for diversification, with minimal exposure to other permissible instruments. The Fund maintains a strong credit profile, with 92.46% of assets invested in AAA rated instruments and sovereign securities, reinforcing its low-risk mandate. Additional allocations include 4.39% in AA- rated exposures and 3.20% in other investment-grade instruments, all subject to strict credit oversight. With a Weighted Average Maturity (WAM) of 773 days, the Fund's portfolio reflects a focus on medium- to long-term government securities. While this duration profile increases sensitivity to interest rate movements.
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.