PACRA Maintains Stability Rating of Alfalah GHP Islamic Income Fund

Alfalah GHP Islamic Income Fund ("AGIIF" or "the Fund") is classified under a medium risk profile. The objective of AGIIF is to minimize risk, construct a liquid portfolio of shariah approved fixed income investments and provide competitive returns to the Unit Holders. The management team shall ensure the active implementation of prudent investment practices, the highest professional standards and compliance with applicable laws. As of June 2025, the Fund reported Assets Under Management (AUM) of PKR 5.391 billion. In terms of asset class, 59.36% of the net assets were invested as Cash Placements, 26.62% in Term Finance Certificates/Sukuks, while remaining 12.67% in Govt. backed/Govt. Guaranteed Securities and 1.35% in others including receivables. From a credit quality metric, 63.9% of assets were allocated in Government Securities/AAA rated instruments, complemented by 20.67% in A+, 5.39% in A1, 4.02% in AA-, 2.32% in AA+, 1.51% in A1+ rated avenues while remaining 1.35% in others. This investment-grade concentration, representing 93% of the portfolio in A+ or higher rated instruments provides protection against credit risk while maintaining strict Shariah compliance. With a Weighted Average Maturity (WAM) of 507 days as of June 2025, the Fund reflects a measured duration profile, indicating a balanced approach between yield enhancement and interest rate risk management. The relatively moderate maturity positioning allows the Fund to retain reinvestment flexibility in a stable policy rate environment, while continuing to generate steady income through exposure to Sukuks and Government-backed securities.
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 291bln at end Jun'25.