PACRA Maintains Stability Rating of Alfalah Financial Sector Income Fund

Alfalah Financial Sector Income Fund ("A-FSIF" or "the Fund"), a medium-risk profile fund under the management of Alfalah Asset Management, continued to uphold its core investment mandate of income enhancement coupled with capital preservation. The Fund’s strategy remained anchored in disciplined exposure to high-quality financial sector instruments, ensuring resilience amid evolving market dynamics. As of March 2025, A-FSIF maintained a highly liquid asset allocation, with approximately 97% of the portfolio positioned in cash and near-cash instruments, enabling swift realignment in response to market changes. The Fund’s exposure to Term Finance Certificates (TFCs) and Sukuks stood at around 1%, while the remaining 2% was allocated to other avenues. On the credit quality front, A-FSIF demonstrated prudent asset selection, with ~49% of holdings in Government and AAA rated instruments and ~48% in A rated exposures, presenting a well-balanced risk-return profile. The remaining ~2% was strategically deployed in other credit quality segments.
The Fund’s Weighted Average Maturity (WAM) stood at 4 days at the end of March 2025, underscoring minimal duration risk and reinforcing the Fund’s conservative positioning with low sensitivity to both interest rate and credit risk volatility.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
Alfalah Asset Management Limited (Formerly: Alfalah GHP Investment Management Limited) was incorporated on October 18, 2004 as an unlisted public limited company and is licensed by the Securities and Exchange Commission of Pakistan to manage open-ended mutual funds and offer investment advisory services. The Company was established as joint venture Non-Banking Finance Company by Bank Alfalah Limited and GHP Arbitrium. The Company provides a wide range of mutual funds and pension funds both in conventional and Shariah compliant category. The Company also provides investment advisory services to HNW individuals and corporate clients. The Company’s board of directors comprises eight members including the Chairman (Mr. Atif Aslam Bajwa) and the Chief Executive Officer (Mr. Khaldoon Bin Latif). The board is dominated by representatives of MAB Investments and Bank Alfalah Limited. The board has two independent and five non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 337bln at end Dec'24.