PACRA Maintains the Stability Rating of ABL Government Securities Fund

ABL Government Securities Fund ("ABL-GSF" or "the Fund") is categorized under a medium-risk profile, with the objective of delivering optimal risk-adjusted returns through investment primarily in a mix of short to long-term Government Securities and other debt instruments. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 5,674mln, compared to PKR 5,980mln as of the last review, reflecting a marginal contraction in fund size during the review period. In terms of asset allocation, approximately 52% of the portfolio was invested in Treasury Bills, 32% in PIBs, 10% in cash, 5% in commercial paper, and ~0.25% in TFCs/Sukuk, reflecting a predominantly sovereign-oriented portfolio with a meaningful duration tilt towards longer-tenor government instruments, consistent with the Fund's income generation objective. From a credit quality perspective, approximately 93% of the Fund's assets were invested in Government Securities and AAA rated instruments, ~5% in A1+ rated instruments, ~0.3% in A+ rated instruments, and ~1.7% in unrated exposures. The overall credit profile is considered very strong and fully compliant with the assigned rating criteria, with the dominant sovereign allocation providing the highest possible quality anchor to the portfolio. The Fund's Weighted Average Maturity (WAM) stood at 317 days as of Jun'26, driven primarily by the Fund's significant allocation to longer-tenor PIBs, reflecting moderate-to-high sensitivity to interest rate movements broadly consistent with the Fund's medium-risk sovereign income mandate and its strategy of capturing competitive returns across the yield curve. Meanwhile, the unit holding pattern reflects a moderate degree of concentration, with the top 10 investors accounting for ~58% of the Fund's total holdings, comprising the AMC's own sponsor holding and provident funds, which are typically stable and long-term in nature, provide a meaningful degree of resilience to the investor base; the Fund's significant T-Bill allocation and adequate cash buffer further support its ability to meet any redemption requirements in a timely manner. In terms of performance, the Fund delivered a one-year return of 9.86% as of Jun'26, against a benchmark return of 10.82%, reflecting an underperformance of approximately 96 basis points.
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 306bln at the end of Jun'26.