PACRA Maintains Stability Rating of Alfalah GHP Money Market Fund

Alfalah GHP Money Market Fund (or the 'Fund') represents a benchmark low-risk liquidity solution in Pakistan's money market sector, combining institutional-scale operations with disciplined short-term portfolio management. The Fund's near exclusive focus on sovereign and highest-rated instruments positions it as a core cash management vehicle for both institutional and retail investors. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 103.4 billion, establishing it as one of Pakistan's largest and most liquid money market funds. Regarding the asset class, 52% of assets were allocated as bank placements, 40% in Treasury Bills, and 7% in Pakistan Investment Bonds, demonstrating an optimal balance between yield generation and liquidity preservation. The Fund exhibits exceptional credit quality with 99.8% of assets in Government Securities/AAA rated instruments, representing one of the purest credit profiles in the money market category. This near-sovereign concentration provides virtually complete protection against credit risk while maintaining the Fund's liquidity objectives. With a Weighted Average Maturity (WAM) of 72 days as of December 2024, the Fund maintains limited exposure to interest rate movements. This disciplined duration management ensures consistent alignment with the Fund's low-risk objectives while allowing for competitive yields in the current rate environment.
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.