PACRA Maintains Stability Rating of Alfalah Islamic Money Market Fund

Alfalah Islamic Money Market Fund (“AIMMF” or “the Fund”) operates with a low risk profile, in line with its objective of generating regular and stable returns through investments in Shariah-compliant banks, Islamic windows of conventional banks, and other approved Shariah-compliant money market instruments. As of September 2025, the Fund reported an AUM of PKR 72,588 million, reflecting its strong presence in the Islamic money market segment. In terms of asset allocation, the Fund maintained a liquid portfolio, with ~50% invested in bank placements, ~28% held as cash, ~13% allocated to TFCs/Sukuks, ~7% invested in government-guaranteed securities, and the remaining ~2% in other approved avenues. This allocation supports the Fund’s objective of maintaining liquidity while generating stable returns. From a credit quality perspective, the portfolio comprised ~48% in AA+ rated instruments, ~35% in Government Securities/AAA rated avenues, ~10% in A1+ rated instruments, ~4% in A1 rated exposures, and the remaining portion in other approved instruments, indicating a sound credit profile consistent with the Fund’s low-risk positioning. At end-Sep’25, the Fund’s Weighted Average Maturity (WAM) stood at 44 days, exposing the Fund to low levels of interest rate and credit risk. The maturity profile reflects a balanced approach toward return stability and liquidity management. The unit holding pattern remained moderately dispersed, with the top 10 investors accounting for ~15% of total holdings as of end-Sep’25, thereby subjecting the Fund to low 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 rating.

About the Entity
Alfalah Asset 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 320bln at end Sep'25.