PACRA Maintains Stability Rating of Alfalah GHP Sovereign Fund

Alfalah GHP Sovereign Fund (or the "Fund") is a low risk profile Fund. The objective of the Scheme is to deliver optimal risk adjusted returns by investing mainly in mix of short to long term Government Securities and other debt Instruments. The rating reflects the credit and interest rate risk profile of the Fund. The Fund has very strong credit quality as the Fund has invested highly in Govt. Securities. The Fund's assets has been diversified as at end Jun'24, ~97.7% in AAA, ~0.03% in AA-, and ~2.0% in other rated avenues. At the end of Jun'24, the Fund had allocated ~48.7% in T-Bills, ~33.8% in PIBs, ~11.2%, in Bank placements, ~0.4% in TFC/Sukuks, and ~2% in other assets. The duration of the Fund at the end Jun’24 was 250 days, exposing the Fund to very high interest rate risk. The WAM of the Fund was 635 days at the end Jun’24, exposing the Fund to very high level of credit risk, however considering the investment in Governments securities, the credit risk is at manageable level. The unit holding pattern of the Fund concentration was 61.06% represented by top ten Investors; giving rise to a high level of redemption pressure which is manageable on the back of strong liquidity profile.
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.