PACRA Maintains Stability Rating of Alfalah Financial Sector Income Fund

Alfalah Financial Sector Income Fund ("AFSIF"or the 'Fund') is a moderate risk profile Fund. The objective of the Fund is to provide income enhancement and preservation of capital by offering different plans that will invest in prime quality Financial Sector TFCs/Sukuks, Bank deposits, spread transactions, and short-term money market instruments. The AUMs of the Fund as of end Mar'24 was PKR 3,129mln. The credit quality of the Fund was in-line with its investment strategy, placing ~55% in A rated avenues and ~40% in AAA rated category at the end of Mar’24. At the end of Mar’24, the Fund had allocated ~50% in banks in the form of deposits and placements, 20% in T-Bills,~18% in GOP Ijara sukuk, 5% in PIB's and the remaining was invested in others. The WAM of the Fund was 130 days at the end of Mar'24, representing moderate exposure to credit risk. The Duration of the Fund stood at 285 days at the period end Mar'24; representing moderate exposure to interest rate risk. The top 10 investors' concentration of the Fund at end-Mar'24 was ~42.51%, exposing the Fund to a moderate level of redemption pressure.
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 and the Chief Executive Officer. 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 158.65bln at end Mar'24.