Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has affirmed the stability rating of Alfalah GHP Islamic Income Fund, highlighting its strong position in Pakistan's Islamic finance sector. The Fund, a Shariah-compliant fixed income solution, aims to offer investors competitive returns while preserving capital through a diversified portfolio of Islamic instruments.

As of December 2024, Alfalah GHP Islamic Income Fund reported Assets Under Management (AUM) of PKR 8.18 billion. The Fund's portfolio allocation includes 49% in Banks/DFIs and other placements, 42% in Government Securities, and 7% in Term Finance Certificates/Sukuks, showcasing a broad-based approach to Shariah-compliant investing.

In terms of credit quality, 62% of the Fund's assets are invested in Government Securities or AAA rated instruments, with an additional 24% in A+ rated and 7% in AA rated avenues. This results in 93% of the portfolio being held in A+ or higher-rated instruments, providing substantial credit risk protection while adhering to Shariah principles.

The Fund's Weighted Average Maturity (WAM) stood at 686 days as of December 2024, reflecting an extended duration profile aimed at capturing yield opportunities in the Islamic fixed income market. This maturity strategy is supported by the Fund's robust liquidity position and significant allocation to government securities.

PACRA's affirmation of the Fund's stability rating underscores its effective investment strategy and strong adherence to Shariah compliance. The agency notes that any significant changes in the Fund's investment policy or compliance with rating criteria could impact the ratings going forward.