PACRA Maintains Stability Rating of Alfalah Islamic Rozana Amdani Fund

Alfalah Islamic Rozana Amdani Fund (or the "Fund") is a low-risk Shariah-compliant money market solution designed to provide investors with daily income distribution while preserving capital through high-quality Islamic instruments. The Fund's ultra-short duration profile and strict adherence to Islamic principles make it particularly suitable for investors seeking Shariah-compliant liquidity management. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 15.07 billion, reflecting its position as one of Pakistan's largest Islamic daily dividend funds. In terms of asset class, 69% of the assets were invested in banks/DFIs, 25% in Government Backed Securities, and 3% in Term Finance Certificates/Sukuks, demonstrating a prudent approach to Islamic liquidity management. From a credit quality metric, 66% of assets were allocated to Government Securities/AAA rated instruments, complemented by 22% in AA+/A1+ rated and 10% in AA/A1 rated avenues. This investment-grade concentration, representing 98% of the portfolio in A1 or better rated instruments, provides substantial protection against credit risk while maintaining full Shariah compliance. With a Weighted Average Maturity (WAM) of 50 days as of December 2024, the Fund maintains minimal exposure to interest rate movements. This ultra-short duration profile ranks among the most conservative in the Islamic money market category, providing strong insulation against monetary policy fluctuations while enabling daily dividend distribution.
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.