Press Release

VIS Reaffirms Fund Stability Rating for ABL Government Securities Fund
 

Karachi, January 18, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of ABL Government Securities Fund (ABL GSF) to ‘AA- (f)’ (Double A Minus (f)). Previous rating action was announced on December 31, 2020.

Launched in November 2011, ABL GSF is designed to deliver risk adjusted returns by investing primarily in a diversified pool of debt instruments comprising of short- and long-term government securities. The fund’s Investment Policy Statement (IPS) restricts minimum 70% of the fund’s assets to be placed in government securities based on quarterly average investment calculated on daily basis.

Net assets of the fund decreased to Rs. 2.9b (FY19: Rs. 4.7b) by end-FY21. The fund’s asset base primarily comprised of government securities and cash balances while rest of the investment portfolio comprised commercial papers and TFCs. Asset allocation was mainly concentrated in ‘AAA’ and ‘AA-’ rated issues/issuers during the year. Total number of investors of the fund decreased slightly during FY21, with decline mainly emanated from retail investors and unrelated associates. During the period under review, the funds relative ranking declined as the fund underperformed both the benchmark and peer average returns. Weighted Average Maturity (WAM) of the fund is capped at 4 years while modified duration is capped at 1-2 years. While duration remained within IPS requisites, it remained above the VIS’s benchmarks for the assigned rating. Maintaining asset allocation and duration of the fund in line with VIS benchmarks will remain important for rating, going forward.

For further information on this rating announcement, please contact Syed Fahim Haider at 042-35723411-13 (Ext: 8006) or the undersigned at021-35311861-70 (Ext: 306) or email at info@vis.com.pk







Faryal Ahmad Faheem
Deputy CEO


Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

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Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited