PACRA Maintains Stability Rating of Alfalah GHP Income Fund

Alfalah GHP Income Fund (or the "Fund") is a low-risk fixed income solution designed to deliver competitive returns while maintaining capital preservation through a diversified portfolio of high-quality debt instruments. The Fund's disciplined investment approach combines active management with rigorous risk controls, positioning it as an attractive option for conservative investors seeking stable income. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 1.55 billion, reflecting its focused presence in Pakistan's fixed income market. In terms of asset class, 45% of the net assets were allocated as bank deposits, 27% in Pakistan Investment Bonds (PIBs), and 21% in Treasury Bills, demonstrating a strategic approach to yield curve positioning and liquidity management. From a credit quality metric, 76% was held in Government Securities/AAA rated instruments, complemented by 17% in A rated avenues. This investment-grade concentration provides substantial protection against default risk while allowing for measured exposure to higher-yielding opportunities. With a Weighted Average Maturity (WAM) of 448 days as of December 2024, the Fund maintains moderate exposure to interest rate risk. This extended maturity profile reflects strategic positioning to capture yield premiums, while the substantial allocation to government securities and high-quality bank deposits provides fundamental stability.
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.