PACRA Maintains Stability Rating of Alfalah GHP Sovereign Fund

Alfalah GHP Sovereign Fund (or the "Fund") is a low-risk fixed income solution designed to provide optimal risk-adjusted returns through strategic allocation to Pakistan's government securities. The Fund's disciplined approach to sovereign debt investing positions it as a core fixed income holding for investors seeking stable returns with minimal credit risk. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 12.27 billion, reflecting its established presence in Pakistan's government debt market. In terms of asset class, 40% investment was held in Treasury Bills, 36% in Pakistan Investment Bonds (PIBs), and 22% in bank placements, demonstrating a comprehensive strategy across short and long-term government instruments. The Fund exhibits exceptional credit quality with 99.3% of assets in Government Securities, representing one of the purest sovereign-focused portfolios in its category. This near-exclusive government exposure provides substantial protection against credit risk while allowing for measured yield enhancement through active duration management. With a Weighted Average Maturity (WAM) of 639 days as of December 2024, the Fund maintains an extended duration profile that positions it to capitalize on Pakistan's yield curve. This strategic maturity management is supported by the Fund's substantial liquidity position (22% bank placements) and 40% allocation to Treasury Bills, which provide stability amid the longer-duration strategy.
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.