PACRA Maintains Stability Rating of Alfalah GHP Income Multiplier Fund

Alfalah GHP Income Multiplier Fund (or the "Fund") is a medium-risk fixed income solution designed to generate stable returns and capital growth through a diversified portfolio of high-quality debt securities and money market instruments. The Fund's balanced approach combines yield enhancement opportunities with prudent risk management, catering to investors seeking consistent income with capital preservation. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 1.44 billion, reflecting its focused presence in Pakistan's fixed income market. The Fund maintains a diversified asset allocation with 55% invested in bank deposits, 27% in Pakistan Investment Bonds (PIBs), 9% in Government-backed Ijarah Sukuk, and 7% in Term Finance Certificates/Sukuks, demonstrating a comprehensive approach to income generation across market segments. The Fund's credit quality profile shows 43% allocation to Government Securities/AAA rated instruments, complemented by 49% in A rated and 13% in A+ rated avenues. This diversified credit exposure allows for measured yield enhancement while maintaining fundamental stability through its sovereign and high-quality corporate holdings. With a Weighted Average Maturity (WAM) of 552 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 balanced by the Fund's substantial liquidity position (55% bank deposits) and 9% allocation to government-backed Sukuk, 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.