PACRA Upgrades the Stability Rating of Alfalah GHP Sovereign Fund

Alfalah GHP Sovereign Fund ('AGSOF' or the 'Fund') operates under a medium risk profile within the sovereign income category. The objective of the Fund is to generate optimal risk-adjusted returns through investments primarily in a diversified mix of short to long-term Government Securities and other debt instruments. As of December 2025, the Fund’s Assets Under Management (AUM) stood at PKR 9,530 million. In terms of asset class, 78.6% of the Fund was invested in Pakistan Investment Bonds (PIBs), 12.4% in Treasury Bills (T-Bills), 4% in Government-backed/Government-guaranteed instruments, and 2.4% in bank deposits, with the remaining exposure in other avenues. From a credit quality perspective, 95.9% of the net assets were deployed in Government Securities/AAA rated avenues, 1.6% in AA- rated instruments, while the remaining portion was allocated to other categories. The Fund’s Weighted Average Maturity (WAM) stood at 1,033 days, reflecting exposure to credit rate risk. Nevertheless, risk levels remain contained, supported by the Fund’s substantial allocation toward Government Securities/AAA rated instruments. Additionally, the top ten investor concentration of the Fund stood at 69%, exposing the Fund to high redemption pressure. However, the Fund benefits from regulatory liquidity management mechanisms available under the NBFC Regulations, which provide safeguards in managing liquidity under stress conditions. In view of the Fund’s portfolio composition, sovereign exposure, and consistency in strategy in line with its stated mandate, the rating action reflects an upgrade, indicating strengthening in the Fund’s risk profile and structural positioning.
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 rating.

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 312bln at end Dec'25.