Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its stability rating for the Alfalah GHP Sovereign Fund (AGSOF), noting the fund's medium risk profile and strategic asset allocation. AGSOF aims to deliver optimal risk-adjusted returns through investments in a mix of short to long-term government securities and other debt instruments.

As of June 2025, AGSOF reported assets under management of PKR 3.980 billion. A significant portion of this, 48.6%, is invested in Pakistan Investment Bonds (PIBs), while cash placements account for 19.2%, government-backed or guaranteed debt securities make up 18.2%, and the remaining 3.2% includes other assets like receivables.

The fund's credit quality is strong, with 96.59% of its assets in government or AAA-rated securities. The weighted average maturity of AGSOF is 1,409 days, reflecting its extended duration profile, largely due to its significant investment in PIBs.

This long duration positions AGSOF to potentially benefit from any mild softening of interest rates. However, it remains susceptible to mark-to-market volatility if the current monetary policy stance, which has held interest rates at 11% for three consecutive reviews, continues longer than expected.

PACRA noted that any substantial changes in AGSOF’s investment policy or compliance with rating criteria could impact the fund's rating in the future.