PACRA Maintains Stability Rating of Alfalah MTS Fund (Formerly: Faysal MTS Fund)

Alfalah MTS Fund (or the "AMTSF") maintains a Medium risk profile. The objective of the fund is to provide competitive returns primarily through investment in the Margin Trading System (MTS) market. As of December 2024, the fund’s asset allocation comprised 90.06% in bank placements and 9.94% in other avenues. A deviation from the investment objective was noted, as the fund has not made any placements in MTS avenues since August 2024. However, the current allocations remain in line with the fund’s stated investment policy. In terms of credit quality, the fund maintained an adequate profile consistent with the rating criteria, with 89.72% exposure in AA- rated instruments, 9.94% in others, and marginal investments of 0.30% in AA and 0.04% in AAA/government-rated avenues. The fund’s Weighted Average Maturity (WAM) stood at 0 days as of December 2024, reflecting very low credit risk, while it should be noted that as announced on January 2025, the management rights of this fund were transferred to Alfalah Asset Management Limited, effective January 1, 2025, with future assessments focusing on the strategies Alfalah will adopt.
Going forward, any material changes in the investment policy or the devised 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.