PACRA Maintains the Stability Rating of ABL Government Securities Fund

ABL Government Securities Fund (“ABL GSF” or the “Fund”) is a medium-risk income scheme, with the objective to deliver optimal risk-adjusted returns by investing primarily in a mix of short- to long-term Government securities and other debt instruments. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at PKR 5,980mln, reflecting an increase from PKR 5,077mln as of Jun’25 (the last review), indicating steady growth and stable investor participation. In terms of asset allocation, approximately ~51% of the portfolio was invested in Treasury Bills, ~22% in Pakistan Investment Bonds (PIBs), and ~26% maintained in cash, with the remaining in other avenues. The allocation reflects a balanced strategy between short-term liquidity and duration exposure through government securities. From a credit quality perspective, the Fund maintained a high-quality profile, with approximately ~99% of assets invested in Government securities and AAA-rated instruments, indicating very low credit risk and strong alignment with the Fund’s mandate. As of Dec’25, the Fund’s Weighted Average Maturity (WAM) stood at 91 days, reflecting controlled exposure to interest rate movements, while still allowing the Fund to capture returns across different tenors of the yield curve. The unit holding pattern reflects moderate investor concentration, with the top 10 investors accounting for ~46% of total units. Notably, ~17% of the Fund is held by Pension and Provident Funds, which typically exhibit relatively stable investment behavior. Consequently, the overall redemption risk remains manageable. In terms of performance, the Fund delivered a one-year annualized return of 11.17% as of Dec’25, slightly outperforming its benchmark return of 11.11%. The performance remains competitive, supported by the Fund’s diversified exposure across government securities and effective duration management.
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 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 287bln at the end of Dec'25.