Press Release
VIS Reaffirms Fund Stability Rating for ABL Government Securities Fund
Karachi, December 30, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of
ABL Government Securities Fund (ABL GSF) at ‘AA-(f)’ (Double A Minus (f)’. The medium to long-term rating of ‘AA-(f)’ denotes moderate degree of stability in NAV. Risk factors may vary with possible changes in the economy. Previous rating action was announced on January 18, 2021.
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. As per the Investment Policy Statement (IPS) and offering document, the fund must deploy at least 70% of its assets in government securities based on monthly average investments to be calculated on a daily basis. Other asset allocation avenues include Cash, TDRs and Corporate TFCs within stipulated limits.
During FY22, the fund’s major asset allocation plan primarily remained concentrated in cash holdings and T-bills. Barring minor deviations, the fund’s asset allocation plan majorly complied with the requirements of the Offering Document. Credit quality requisites also remained compliant, no breaches were witnessed during FY22. WAM and duration of the fund were also observed to be within the stipulated limits during the year, however, fund performance witnessed deterioration. On annual basis, for FY22, the fund was ranked 28 out 31 among peers.
For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 210) or the undersigned (207) at 021-35311861-70 or email at info@vis.com.pk
Sara Ahmed
Director
Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf