PACRA Maintains Stability Rating of Alfalah GHP Cash Fund

Alfalah GHP Cash Fund (or the "Fund") is a low-risk profile Fund, designed to provide investors with capital preservation and competitive returns through a concentrated portfolio of high-quality, short-term instruments. The Fund's disciplined approach to liquidity management and near-exclusive sovereign focus positions it as a core cash management solution for risk-averse investors. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 5.3 billion, reflecting its established presence in Pakistan's money market sector. The Fund maintains a defensive asset allocation with 52% investment in Treasury Bills, 44% in bank placements, and 4% in Pakistan Investment Bonds, demonstrating a balanced approach to yield optimization and liquidity preservation. The Fund demonstrates exceptional credit quality with 99.56% of assets in Government Securities and AAA-rated instruments, representing one of the purest sovereign-focused portfolios in its peer group. This near-risk-free allocation provides substantial protection against credit default while maintaining optimal liquidity characteristics. With a Weighted Average Maturity (WAM) of just 35 days as of December 2024, the Fund exhibits minimal exposure to interest rate risk. This ultra-short duration profile ranks among the most conservative in the money market category, providing strong insulation against monetary policy fluctuations.
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.