Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the Alfalah GHP Income Fund, highlighting its role as a low-risk fixed-income solution for investors prioritizing capital preservation. With a disciplined investment strategy that melds active management and stringent risk controls, the Fund aims to deliver competitive returns to conservative investors seeking stable income.

As of December 2024, the Fund reported Assets Under Management (AUM) amounting to PKR 1.55 billion, underscoring its concentrated presence in Pakistan's fixed-income market. The Fund's asset allocation includes 45% in bank deposits, 27% in Pakistan Investment Bonds (PIBs), and 21% in Treasury Bills, reflecting a strategic approach to yield curve positioning and liquidity management.

In terms of credit quality, 76% of the Fund's holdings are in Government Securities or AAA-rated instruments, supplemented by 17% in A-rated options. This investment-grade focus offers substantial protection against default risks while providing calculated exposure to higher-yield opportunities.

The Fund maintains a Weighted Average Maturity (WAM) of 448 days, indicating moderate exposure to interest rate risk. This maturity profile is part of a strategic approach to capture yield premiums, while the significant allocation to government securities and high-quality bank deposits ensures foundational stability.

Future changes in the Fund's investment policy or any deviations from the rating criteria could influence the current ratings, PACRA noted.