Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
PACRA Maintains Stability Rating of Alfalah GHP Money Market Fund
Rating Type | Stability Rating | |
Current (13-Oct-23 ) |
Previous (13-Apr-23 ) |
|
Action | Maintain | Maintain |
Long Term | AA+(f) | AA+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Alfalah GHP Money Market Fund (or the "Fund") is a low risk profile fund. The objective of the Fund is to generate competitive returns consistent with low risk from a portfolio constituted of short term instruments including cash deposits, money market placements and government securities. The Fund will maintain a high degree of liquidity at all times. The rating reflects the strong strength of the Funds credit and interest rate risk profile. At the end of Jun'23, the Fund had allocated ~43% in Government securities (PIBs & T-Bills), ~54.8% in Bank deposits, placements & other banking instruments in AA+ rated and above, ~2.2% in Corporate sukuk majorly in AA rated. The duration stood at 26 Days, limiting the Fund exposure to interest rate risk. The WAM stood at 31 days in the end Jun’23, limiting the Fund exposure to credit risk.
During FY23,the Fund generated a return of 17.7% while the benchmark of the fund generated 17.1%. The Fund's unit holding pattern remains moderately concentrated with the top 10 investors comprising ~25.1% of the Fund's net assets equally distributed, keeping redemption pressure to a low level.
Going forward, the Fund intends to increase allocation towards banks placements. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
About
the Entity
Alfalah Asset Management Limited (Formerly: Alfalah GHP Investment Management Limited) was incorporated on October 18, 2004 as an unlisted public limited company and is licensed by the Securities and Exchange Commission of Pakistan to manage open-ended mutual funds and offer investment advisory services. The Company was established as joint venture Non-Banking Finance Company by Bank Alfalah Limited and GHP Arbitrium. The Company provides a wide range of mutual funds and pension funds both in conventional and Shariah compliant category. The Company also provides investment advisory services to HNW individuals and corporate clients.
The Company’s board of directors comprises eight members including the Chairman and the Chief Executive Officer. The board is dominated by representatives of MAB Investments and Bank Alfalah Limited. The board has two independent and five non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 99.4bln at end June'23.