Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the Alhamra Government Securities Fund (AHGSF), maintaining its medium risk profile. The decision reflects the fund's strategic focus on Shariah-compliant government securities and Islamic banking instruments.

Alhamra Government Securities Fund, with assets under management totaling PKR 139.7 billion as of December 2024, is recognized as one of Pakistan's largest money market funds. The fund's investment strategy is heavily weighted towards sovereign Islamic instruments, specifically GOP Ijara Sukuk, which accounts for 77.7% of its portfolio. Additionally, 20.7% of the fund's assets are placed with Islamic banks and banking windows, while the remaining 1.6% is allocated to other investments.

The fund's credit quality is robust, with high-grade exposures dominating its holdings. Of the total assets, 77.7% are allocated to Government or AAA-rated securities, and 20.7% are in AA-rated placements. The remaining 1.6% consists of other instruments. The fund's conservative approach is further underscored by a weighted average maturity of 164 days, suggesting relatively low credit risk.

Looking ahead, PACRA notes that any significant changes in the fund's investment policy or compliance with rating criteria could affect the current rating. The agency continues to closely monitor these factors.