Karachi, January 19, 2022 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of ABL Income Fund (ABL IF) at ‘A+ (f)’ (Single A plus (f)). The previous rating action was announced on December 31, 2020. ABL-IF is an open-end income fund launched in September 2008. The fund’s objective is to earn a superior risk adjusted rate of return by investing in a blend of short-, medium- and long-term instruments, both within and outside Pakistan. Net assets of the fund increased significantly to Rs. 8.4b (FY20: Rs. 1.5b) by end-FY21.

As per the fund’s Investment Policy Statement (IPS), at least a quarter of the fund’s assets must be deployed in cash while other investment avenues comprise TFCs and sovereign instruments. The fund’s asset allocation plan primarily comprised of government securities and TFCs while more than a quarter of the fund’s portfolio consisted of cash. Credit quality exposures remained in line with the requisites of VIS’s criteria for the assigned ratings. WAM of the fund is capped at 4 years and target duration of the fund has been capped at 1 year for which the fund largely remained compliant during the year. Portfolio contribution by retail investors and associates decreased slightly by end-FY21 as compared to the preceding year. The fund underperformed its benchmark return during FY21.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/