PACRA Maintains the Stability Rating of Alfalah Islamic Money Market Fund

Alfalah Islamic Money Market Fund ("AIMMF" or "the Fund") is categorized under a low-risk Islamic Money Market Scheme, with the objective of generating regular and stable returns through investments primarily in Shariah-compliant banks, Islamic banking windows of conventional banks, and other permissible Shariah-compliant money market instruments. The Fund is structured to provide investors with capital preservation, high liquidity, and competitive risk-adjusted returns while maintaining strict adherence to Islamic investment principles. As of Mar'26, the Fund's Assets Under Management (AUM) stood at PKR 70,690mln, compared to PKR 72,588mln as of Sep'25 (the last review), reflecting a marginal decline in fund size while maintaining a significant market presence within the Islamic money market category. In terms of asset allocation, approximately 57.7% of the portfolio was invested in placements with Banks/DFIs, ~18% in cash and cash equivalents, ~11% in Government-guaranteed securities, and ~11% in Sukuks. The portfolio composition reflects a balanced approach between liquidity management and return optimization, while remaining consistent with the Fund's low-risk investment mandate. From a credit quality perspective, approximately 48% of the Fund's assets were invested in AAA-rated and Government-backed securities, while ~40% was allocated to AA+ rated instruments. The remaining exposure was maintained in other high-quality investment-grade avenues. The Fund's overall credit profile remains strong, supported by substantial exposure to top-tier counterparties, sovereign-backed instruments, and highly rated Islamic financial institutions. The concentration in quality exposures remains commensurate with the assigned rating and supports the Fund's stability profile. The Fund's Weighted Average Maturity (WAM) stood at 57 days as of Mar'26, reflecting low sensitivity to profit rate movements and credit risk. The short-duration profile provides flexibility in portfolio rebalancing and enables the Fund to respond effectively to changing market conditions while maintaining ample liquidity. In terms of performance, the Fund generated a 365-day return of 10.22% as of Mar'26, outperforming its benchmark return of 9.70% by approximately 52 basis points. The favorable performance reflects effective portfolio management, prudent deployment across Shariah-compliant money market instruments, and the Fund's ability to generate competitive returns while preserving a conservative risk profile.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.

About the Entity
Alfalah Asset 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 361bln at end Mar'26.