PACRA Maintains Stability Rating of Alfalah GHP Islamic Income Fund

Alfalah GHP Islamic Income Fund (“AGIIF” or “the Fund") is a medium risk profile Shariah-compliant income Fund. The investment objective of the Fund is to minimize risk, construct a liquid portfolio of Shariah-approved fixed income investments, and provide competitive returns to unit holders. The management team seeks to ensure the active implementation of prudent investment practices, the highest professional standards, and compliance with applicable laws. As of Dec'25, the Fund’s AUM stood at ~PKR 4,086mln, down from ~PKR 5,454mln at the time of Jun'25, reflecting net outflows during the period while maintaining the Fund’s investment strategy. In terms of asset allocation, the Fund maintained ~41.40% in bank deposits, followed by ~39.40% in Commercial Papers/Sukuk, ~12.20% in placements with DFIs/Banks, and ~4.60% in Government-Backed/Government-Guaranteed securities, with the remaining portion allocated to other instruments. The allocation reflects a diversified Shariah-compliant portfolio balancing liquidity with income-generating fixed-income investments. From a credit quality perspective, ~33.00% of the portfolio was invested in AA+/A1+ rated avenues, ~21.30% in Government Securities/AAA rated avenues, ~19.00% in AA/A1 rated instruments, and ~18.80% in A+ rated avenues, with the remaining portion allocated to other categories, indicating moderate credit risk exposure supported by a significant allocation to high-quality rated instruments. At end-Dec'25, the Fund’s WAM stood at 226 days, reflecting moderate exposure to interest rate movements. However, the overall credit risk remains manageable due to the Fund’s meaningful investment in Government Securities/AAA rated avenues. In terms of performance, the Fund reported a 12-month trailing return of 9.12% as of Dec'25, which remained below the benchmark return of 10.12%, indicating underperformance relative to its benchmark.
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 351bln at end Dec'25.