Press Release

VIS Upgrades Fund Stability Rating for ABL Government Securities Fund

Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of ABL Government Securities Fund (ABL GSF) to ‘AA- (f)’ (Double A Minus (f)) from ‘A+ (f)’ (A plus (f)). Previous rating action was announced on January 20, 2020.

The rating action incorporates updated FUND STBILITY RATING methodology which can be found on our website https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf for reference.


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 IPS restricts minimum 70% of the fund’s assets to be placed in government securities that are based on quarterly average investment to be calculated on a daily basis.

Net assets fund substantially increased to Rs. 4.7b (FY19: Rs. 2.8b) at end-FY20. The fund’s asset base primarily comprised of cash balances and government securities while placing significant chunk of its portfolio in AAA rated issue/issuer. Total number of investors of the fund increased while proportion held by retail investors also improved. WAM of the fund is capped at 4 years while modified duration is capped at 1-2 years. Actual asset allocation and duration of the fund remained compliant with VIS’s criteria during the period under review.



For further information on this rating announcement, please contact Ms. Asfia Aziz or the undersigned (Ext. 301) at 021-35311861-70 or email at info@vis.com.pk .


Faheem Ahmad
President & CEO


Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf

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 December 31, 2020 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.