PACRA Maintains Stability Rating of Alfalah Money Market Fund-II (Formerly: Faysal Money Market Fund)

Alfalah Money Market Fund-II (or the "Fund") maintains a low risk profile. The fund’s objective is to generate competitive returns with minimal risk and enhanced liquidity by investing primarily in short-term government securities, term deposits, and money market instruments, ensuring that the weighted average time to maturity (WAM) of net assets does not exceed 90 days. As of December 2024, the fund’s asset allocation stood at approximately ~73.75% in T-bills, ~17.80% in bank placements, and ~8.46% in other avenues. In terms of credit quality, the fund maintained an adequate profile consistent with the rating criteria, with around 91.38% in AAA-rated instruments, and ~8.46% in other receivables. The WAM of the fund was recorded at 55 days as of December 2024, remaining well within the regulatory threshold and aligned with its investment mandate, thereby exposing it to low credit risk, while it should be noted that as announced on January 2025, the management rights of this fund were transferred to Alfalah Asset Management Limited, effective January 1, 2025, with future assessments focusing on the strategies Alfalah will adopt.
Going forward, any material changes in the investment policy or the devised 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.