PACRA Maintains Stability Rating of ABL Government Securities Fund

ABL Government Securities Fund (“ABL GSF” or “the Fund”), a moderate-risk profile fund, is designed to deliver optimal risk-adjusted returns by investing primarily in a mix of short- to long-term Government Securities along with other debt instruments. The Fund maintains a strategic balance between income generation and risk exposure through its diversified allocation across sovereign avenues. As of June 2025, the Fund’s assets under management (AUM) stood at PKR 5 billion. The Fund’s asset allocation reflected its sovereign-focused stance, with ~66% invested in Government of Pakistan Treasury Bills (T-Bills), ~17% in Pakistan Investment Bonds (PIBs), ~5% maintained in cash, while the remaining portion was deployed across other avenues. This allocation underscores the Fund’s emphasis on government-backed exposures while retaining liquidity buffers. The credit quality of the Fund remained strong, with ~86% exposure in government securities/AAA-rated avenues, ~2% in A+ rated, ~0.21% in AA+ rated instruments, and the remaining across other investment-grade exposures. This composition highlights the Fund’s reliance on high-quality sovereign instruments in line with its investment mandate. The Weighted Average Maturity (WAM) of the Fund was reported at 722 days as of June 2025, indicating a long maturity profile. This exposes the Fund to heightened sensitivity to interest rate and credit risk, consistent with its positioning in medium- to long-tenor sovereign instruments. The unit holding structure of the Fund indicated moderate concentration, with the top 10 investors collectively accounting for ~47% of outstanding units at end-June 2025. While this introduces some degree of redemption pressure, the Fund’s sizable exposure in liquid sovereign securities provides adequate capacity to meet withdrawals without undermining portfolio stability.
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 273bln at the end of Jun'25.