Karachi: The Pakistan Credit Rating Agency (PACRA) has reaffirmed its stability rating for the Alfalah GHP Sovereign Fund, a low-risk fixed income solution focused on Pakistan's government securities. The Fund, which reported Assets Under Management (AUM) of PKR 12.27 billion as of December 2024, is designed to offer optimal risk-adjusted returns through strategic investment in sovereign debt.

The Fund's portfolio consists of a diversified allocation, with 40% invested in Treasury Bills, 36% in Pakistan Investment Bonds (PIBs), and 22% in bank placements. This allocation strategy underscores its approach to balancing short and long-term government instruments while maintaining stability and credit quality.

An impressive 99.3% of the Fund's assets are invested in Government Securities, providing a significant guard against credit risk. This composition positions the Fund as one of the purest sovereign-focused portfolios in its category, offering investors a stable investment option with minimal credit risk.

The Fund's Weighted Average Maturity (WAM) stands at 639 days as of December 2024, reflecting an extended duration profile. This maturity management is part of the Fund's strategy to leverage Pakistan's yield curve for potential gains, supported by a liquidity position of 22% in bank placements and a 40% allocation to Treasury Bills.

PACRA noted that any material changes in the Fund's investment policy or compliance with rating criteria could impact the stability rating. The Fund's disciplined approach to sovereign debt investing continues to position it as a core fixed income holding for investors seeking reliable returns.