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 Fund aims to minimize risk, construct a liquid portfolio of Shariah-approved fixed income investments and provide competitive returns to its Unit holders. As of Jun'26, the Fund's AUM stood at approximately PKR 4,945mln, up from approximately PKR 4,086mln as of Dec'25, reflecting growth in Fund size during the period. In terms of asset allocation, the Fund maintained approximately 68.7% in bank deposits, followed by 28.8% in Commercial Papers/Sukuks, with the remaining exposure allocated to other instruments. The portfolio of the Fund remained primarily concentrated in bank deposits and Shariah-compliant fixed income instruments. From a credit quality perspective, approximately 67.8% of the portfolio was invested in AA+/A1+ rated avenues, followed by 26.1% in AA/A1 rated instruments and 3.9% in Government Securities/AAA rated avenues, with the remaining exposure allocated to other categories. The Fund's credit quality remains supported by its significant exposure to highly rated avenues. At end-Jun'26, the Fund's WAM stood at 398 days, reflecting relatively high exposure to credit risk. However, the overall credit risk remains manageable due to the Fund's meaningful exposure to Government Securities/AAA rated avenues. The duration of the Fund stood at 44 days, indicating low sensitivity to interest rate movements. The top-ten unit holding concentration stood at 36.1%, indicating a moderate level of redemption concentration. However, potential redemption pressure remains manageable given the Fund's sizeable investments in bank placements. In terms of performance, the Fund reported a 12-month trailing return of 11.16% as of Jun'26, which remained above the benchmark return of 9.60% but slightly below the peer average return of 11.43%. The Fund's performance reflects outperformance against its benchmark, while remaining marginally below the peer average.
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 356bln at end Jun'26.