PACRA Maintains Stability Rating of Alfalah GHP Sovereign Fund

Alfalah GHP Sovereign Fund ("AGSOF" or "the Fund") is classified under a medium risk profile. The objective of AGSOF is to deliver optimal risk adjusted returns by investing mainly in mix of short to long term Government Securities and other debt Instruments. As of June 2025, the Fund reported Assets Under Management (AUM) of PKR 3.980 billion. In terms of asset class, 48.6% investment was held in Pakistan Investment Bonds (PIBs), 19.2% as Cash Placements, 18.2% in Govt. backed/Govt. Guaranteed Debt Securities and 3.2% in others including receivables, demonstrating a comprehensive strategy across short and long-term government instruments. The Fund exhibits exceptional credit quality with 96.59% of assets in Government/AAA rated securities and remaining 3.2% in others including recievables. With a Weighted Average Maturity (WAM) of 1,409 days as of June 2025, the Fund maintains a notably extended duration profile, primarily driven by higher exposure in Pakistan Investment Bonds (48.6%). This positioning allows the Fund to benefit in case of a potential mild softening of interest rates, while still remaining exposed to mark-to-market volatility should the current policy stance, maintained at 11% for three consecutive monetary policy reviews, persist longer than anticipated.
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 291bln at end Jun'25.