PACRA Maintains 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 Fund’s objective 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 Jun’26, the Fund’s Assets Under Management (AUM) stood at approximately PKR 5,839 million, compared with approximately PKR 9,530 million as of Dec’25, indicating a significant decline in the Fund’s AUM during the period. In terms of asset allocation, approximately 57.4% of the Fund’s assets were invested in Pakistan Investment Bonds (PIBs), 25.2% in bank deposits, 9.2% in Treasury Bills (T-Bills), and 6.0% in Government-backed/Government-guaranteed instruments, with the remaining exposure allocated to other avenues. From a credit quality perspective, approximately 97.8% of the Fund’s net assets were deployed in Government Securities/AAA rated avenues, while the remaining portion was allocated across other categories. The Fund’s Weighted Average Maturity (WAM) stood at 704 days, indicating relatively high exposure to credit risk. Nevertheless, credit risk remains contained, supported by the Fund’s substantial allocation to Government Securities/AAA rated instruments. The Fund’s duration stood at 558 days, reflecting high sensitivity to interest rate movements and, consequently, elevated interest rate risk. The top ten investor concentration stood at approximately 75.64%, exposing the Fund to high redemption pressure in the event of sizeable withdrawals. However, the Fund benefits from regulatory liquidity management mechanisms available under the NBFC Regulations, which provide safeguards for managing liquidity under stressed conditions. In terms of performance, the Fund reported an annualized return of 11.79% as of Jun’26, underperforming both the benchmark return of 16.26% and the peer average return of 14.14%. The Fund’s performance therefore remained below both its benchmark and peer group during the period.
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 356bln at end Jun'26.