Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of Al Habib Government Securities Fund (AHGSF), a moderate-risk income fund prioritizing capital preservation and return optimization. The Fund has strategically allocated its Assets Under Management (AUM) to maintain a robust exposure to sovereign instruments, with a focus on short and long-term government securities.

As of December 31, 2024, AHGSF invested approximately 68% of its AUM in short-term Treasury Bills (T-Bills) and 26% in long-term Pakistan Investment Bonds (PIBs). This allocation strategy underscores the Fund's commitment to maintaining liquidity and optimizing returns by leveraging sovereign debt instruments.

The Fund's portfolio reflects a strong credit quality profile, with 99.42% of assets invested in AAA-rated instruments. This allocation strategy mitigates default risk and supports consistent risk-adjusted returns, aligning with the Fund's conservative investment philosophy.

The Weighted Average Maturity (WAM) of the Fund's portfolio was recorded at 329 days, indicating a careful balance between interest rate sensitivity and yield optimization. This position allows the Fund to remain responsive to changes in monetary policy while effectively managing duration risk.

According to PACRA, any significant changes in the Fund's investment policy or adherence to rating criteria could impact its stability rating in the future.