PACRA Affirms Stability Rating for ABL Government Securities Fund

Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of the ABL Government Securities Fund (ABL GSF), highlighting the Fund’s commitment to delivering optimal risk-adjusted returns through strategic investments in government securities. The Fund, characterized by a moderate-risk profile, focuses on a balanced approach between income generation and risk exposure.

As of June 2025, the ABL GSF managed assets totaling PKR 5 billion. The asset allocation strategy of the Fund prominently features a sovereign-focused stance, with approximately 66% of its assets invested in Government of Pakistan Treasury Bills (T-Bills) and 17% in Pakistan Investment Bonds (PIBs). Additionally, 5% of its assets are maintained in cash, while the remaining portion is allocated across other investment avenues.

The Fund’s credit quality remains robust, with around 86% of its exposure in government securities or AAA-rated avenues. This reflects the Fund’s reliance on high-quality sovereign instruments. The remaining assets are distributed among A+ rated, AA+ rated, and other investment-grade exposures.

The Weighted Average Maturity (WAM) of the Fund was reported at 722 days, indicating a long maturity profile. This aligns with its strategy of medium- to long-tenor sovereign instruments, exposing the Fund to interest rate and credit risks.

The unit holding structure showed moderate concentration, with the top 10 investors holding approximately 47% of the outstanding units as of end-June 2025. This concentration introduces some redemption pressure, but the Fund’s substantial exposure to liquid sovereign securities ensures the ability to meet withdrawals without destabilizing the portfolio.

Looking ahead, any significant changes in the investment policy or the rating criteria could impact the Fund’s stability rating.