Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the Alfalah GHP Money Market Fund, underscoring its position as a benchmark low-risk liquidity solution in Pakistan's money market. The Fund, which focuses predominantly on sovereign and high-rated instruments, serves as a key cash management vehicle for both institutional and retail investors.

As of December 2024, the Fund reported Assets Under Management (AUM) totaling PKR 103.4 billion, ranking it among the largest and most liquid money market funds in Pakistan. The asset allocation strategy of the Fund is characterized by 52% of its assets in bank placements, 40% in Treasury Bills, and 7% in Pakistan Investment Bonds. This allocation reflects a strategic balance aimed at yield generation and liquidity preservation.

The Fund is notable for its credit quality, with 99.8% of its assets invested in Government Securities or AAA-rated instruments. This focus on high-credit quality assets provides robust protection against credit risk while maintaining liquidity objectives. The Fund's credit profile is considered one of the purest in the money market category.

With a Weighted Average Maturity (WAM) of 72 days as of December 2024, the Fund ensures limited exposure to interest rate fluctuations. This approach to duration management aligns with the Fund's low-risk objectives and supports the delivery of competitive yields in the prevailing rate environment.

PACRA indicated that any significant changes to the Fund's investment policy or adherence to the rating criteria could impact its stability rating.