PACRA Maintains Stability Rating of Alfalah GHP Islamic Income Fund

Alfalah GHP Islamic Income Fund (or the "Fund") is a low risk profile Fund. The investment objective of the Fund is to minimize risk by constructing a liquid portfolio of shariah approved fixed-income investments, and provide competitive returns to the unit holders. The rating reflects the Fund's low credit risk profile emanating from its investment strategy. The asset allocation of the Fund as at end Jun'24 was ~37.5% in Banks placements, ~34.3% invested in TFC/Sukuk, ~24.1% in Government Securities, whereas remaining invested in other assets. The credit quality of the fund was ~37.1% in AAA, ~29.8% in A+, ~14.7% in AA+, ~9.5% in AA-, ~5.8% in AA, and ~4.1% in other rated avenues as at end Jun'24. The duration of the Fund stood at 59 days as at end Jun'24, exposing the Fund to low-interest rate risk. While the WAM of the Fund remained 763 days as at Jun'24, exposing the Fund to very high credit risk. The credit risk has been managed through investing in Govt Securities. The top 10 investors' concentration of the Fund as at Jun'24, was ~30.3%, giving rise to a low level of redemption pressure.
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 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 189bln at end Jun'24.