PACRA Maintains Stability Rating of Alfalah GHP Islamic Income Fund

Alfalah GHP Islamic Income Fund (or the "Fund") is a low-risk Shariah-compliant fixed income solution designed to provide investors with competitive returns while preserving capital through a diversified portfolio of Islamic instruments. The Fund's disciplined investment approach combines rigorous Shariah compliance with active liquidity management, positioning it as a core holding for Islamic investors seeking stable income. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 8.18 billion, reflecting its growing prominence in Pakistan's Islamic finance sector. In terms of asset class, 49% of the net assets were invested in Banks/DFIs and other placements, 42% in Government Securities, and 7% in Term Finance Certificates/Sukuks, demonstrating a comprehensive approach to Shariah-compliant investing. From a credit quality metric, 62% of assets were allocated in Government Securities/AAA rated instruments, complemented by 24% in A+ rated and 7% in AA rated avenues. This investment-grade concentration, representing 93% of the portfolio in A+ or better rated instruments, provides substantial protection against credit risk while maintaining strict Shariah compliance. With a Weighted Average Maturity (WAM) of 686 days as of December 2024, the Fund maintains an extended duration profile that positions it to capture yield opportunities in the Islamic fixed income space. This strategic maturity management is balanced by the Fund's substantial liquidity position (49% bank/DFI placements) and strong government security allocation (42%), 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.