PACRA Reaffirms ABL Financial Sector Fund’s Stability Rating

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the ABL Financial Sector Fund, underscoring the fund’s robust strategy and strong liquidity profile. The fund, which carries a moderate-risk profile, is designed to deliver competitive risk-adjusted returns through a diversified portfolio of fixed income and debt instruments.

The fund’s strategy focuses on liquidity, maintaining substantial exposure in short-duration investments, while retaining the option to hold cash as needed. As of June 2025, ABL Financial Sector Fund’s assets under management totaled PKR 54 billion, with approximately 86% held in cash. The remainder was allocated among banks, DFIs, MFBs, and government treasury bills.

The credit quality of the fund is diversified, with 62% exposure in government securities and AAA-rated avenues, and additional investments in A+ and A-rated instruments. This allocation reflects the fund’s commitment to high-quality instruments while maintaining a moderate risk profile.

The fund’s weighted average maturity was reported at 31 days in June 2025, highlighting its conservative approach and focus on short-term instruments. This maturity profile helps manage interest rate and credit risk effectively.

The unit holding structure reveals moderate concentration, with the top 10 investors holding 31% of the outstanding units. Despite potential redemption pressure, the fund’s liquidity strategy ensures it can meet withdrawals without compromising portfolio stability.

PACRA emphasized that any significant changes in the fund’s investment policy or compliance with rating criteria could impact future ratings.