Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of the Alfalah GHP Cash Fund, underscoring its position as a reliable investment choice for risk-averse investors. As of December 2024, the fund reported assets under management amounting to PKR 5.3 billion, reflecting its strong presence in Pakistan's money market sector.

The fund, designed for capital preservation and competitive returns, maintains a portfolio concentrated in high-quality, short-term instruments. Its asset allocation is predominantly defensive, with 52 percent investment in Treasury Bills, 44 percent in bank placements, and 4 percent in Pakistan Investment Bonds. This approach balances yield optimization with liquidity preservation.

The credit quality of the fund's portfolio is noteworthy, with 99.56 percent of its assets in government securities and AAA-rated instruments. This near-exclusive sovereign focus positions Alfalah GHP Cash Fund as one of the most secure options in its peer group, providing substantial protection against credit default.

With a weighted average maturity of just 35 days as of December 2024, the fund boasts a minimal exposure to interest rate risk. This ultra-short duration profile offers strong insulation against fluctuations in monetary policy, ranking it among the most conservative in the money market category.

PACRA's affirmation of the fund's stability rating highlights its disciplined approach to liquidity management and its commitment to maintaining a low-risk profile. However, potential changes in investment policy or deviations from rating criteria could impact future ratings.