PACRA Maintains Stability Rating of Alfalah Islamic Sovereign Fund

Alfalah Islamic Sovereign Fund ("A-ISF" or "the Fund"), a Shariah-compliant, medium-risk profile fund managed by Alfalah Asset Management, continued to pursue its mandate of delivering competitive returns with low credit risk through investments in high-quality Islamic instruments. The Fund’s disciplined strategy remains focused on offering sustainable, Halal income avenues for long-term investors. As of March 2025, A-ISF maintained a strategically diversified asset allocation, with approximately ~73% of the portfolio in Government-guaranteed Shariah-compliant securities, ~21% in cash and near-cash placements, and the remaining ~5% in other Islamic instruments, including short-term Sukuks and commercial papers. On the credit quality front, the Fund demonstrated strong prudence, with ~76% of holdings in Government and AAA rated instruments, ~18% in AA rated exposures, and ~5% in other rated securities, underscoring its preference for high-grade assets within the Islamic financial landscape. At the end of March 2025, A-ISF’s Weighted Average Maturity (WAM) stood at 1,225 days, reflecting its long-term positioning and higher sensitivity to interest rate and credit spread movements.
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.