PACRA Upholds Alfalah GHP Income Multiplier Fund’s Stability Rating

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has announced that it is maintaining the stability rating of the Alfalah GHP Income Multiplier Fund (AGIMF), classified under a medium risk profile. The fund aims to provide stable and consistent returns while achieving capital growth through a diversified portfolio of high-quality debt securities and liquid money market instruments.

As of June 2025, AGIMF reported assets under management of PKR 1.232 billion, with a diversified portfolio allocation strategy. Approximately 45.8% of the fund’s investments are in Government Guaranteed/Ijara Sukuk, 37.0% in cash placements, 7.8% in Pakistan Investment Bonds (PIBs), 5.9% in TFCs/Sukuk, and 3.6% in other assets, including receivables. This portfolio composition reflects a balance between liquidity and sovereign exposure, alongside selective yield enhancement through corporate instruments.

From a credit quality perspective, 63.1% of AGIMF’s assets are invested in government securities and AAA-rated instruments, while 32.9% are in A-rated avenues; the remaining 3.6% are classified as others. The exposure in A-rated instruments is slightly higher than the benchmark range associated with the assigned rating, indicating a need for continued monitoring to ensure alignment with credit quality standards.

The weighted average maturity (WAM) of the fund stood at 857 days as of June 2025, driven by investments in long-tenor Sukuk and PIBs. Although this suggests an extended duration profile, the composition aligns with the fund’s mandate to generate stable returns through a blend of sovereign and high-quality corporate holdings within a medium-risk framework.

PACRA noted that any substantial changes in AGIMF’s investment policy or compliance with rating criteria could affect the stability rating.