Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has announced that the stability rating of the ABL Financial Sector Fund (ABL-FSF) will remain unchanged. The fund, categorized under a medium-risk profile, aims to enhance income and preserve capital through investments in high-quality financial sector instruments, including TFCs/Sukuks, bank deposits, and short-term money market instruments.

According to The Pakistan Credit Rating Agency Limited, ABL-FSF's strategy is centered on producing competitive income returns through selective exposure across the financial sector credit spectrum. As of June 26, the fund's Assets Under Management (AUM) amounted to PKR 40,853 million, a decrease from PKR 50,618 million noted at the last review. The portfolio allocation showed a strong preference for liquidity, with about 96% invested in cash, approximately 2% in Treasury Bills, around 1% in commercial paper, and 0.3% in PIBs.

The fund's credit quality indicates about 25% of assets in Government Securities and AAA-rated instruments, roughly 74% in A+ rated instruments, and 1.4% in AA- rated instruments. The remaining assets are in other exposures. The Weighted Average Maturity (WAM) of the fund was reported at 8 days as of June 26, indicating a strong liquidity position.

Investor concentration is low, with the top 10 investors holding about 24% of the fund's total assets. This diversified investor base, combined with a predominantly cash-based portfolio and a short WAM, facilitates the fund's ability to meet redemption requirements swiftly. The fund delivered a one-year return of 10.47% as of June 26, slightly underperforming the benchmark return of 10.61% by 14 basis points.

Future changes in investment policy or compliance with rating criteria might affect the fund's rating.