Islamabad: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of the Alfalah GHP Income Multiplier Fund at A+(f) with a stable outlook, as per its latest assessment conducted on October 9, 2024. The fund, recognized for its moderate risk profile and commitment to generating consistent returns, has shown substantial stability in its investment strategies and portfolio management.

According to The Pakistan Credit Rating Agency Limited, the Alfalah GHP Income Multiplier Fund aims to deliver stable and consistent returns while pursuing capital growth through a diversified portfolio comprising high-quality debt securities and liquid money market instruments. The fund’s performance, underscored by its strategic investments, has held a stable rating since the previous assessment in April 2024.

The analysis highlights that approximately 49.2% of the fund’s assets were invested in Pakistan Investment Bonds (PIBs), with 21.0% in bank placements, and smaller percentages in TFC/Sukuks and government-backed securities by the end of June 2024. The fund’s credit quality is predominantly top-tier, with about 66.7% of investments rated AAA, showcasing a strong emphasis on high-grade securities to mitigate credit risks.

The Weighted Average Maturity (WAM) of the fund stood at 1,183 days at the end of June 2024, with a duration of 90 days, indicating a very high credit risk but low interest rate risk profile. The fund’s exposure to credit risk is carefully managed through significant investments in government securities.

PACRA noted the fund’s unit holding pattern is moderately concentrated, with the top ten investors holding about 59.75% of its assets, posing a moderate level of redemption pressure. The agency also stated that any material changes in the fund’s investment policy or deviations from the rating criteria could impact future ratings.