The Pakistan Credit Rating Agency Limited
13-Oct-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Alfalah GHP Money Market Fund
| Rating Type | Stability Rating | |
|
Current (13-Oct-22 ) |
Previous (08-Apr-22 ) |
|
| 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 assigned rating of the Fund reflects its good credit quality and its sound liquidity profile, which emanate primarily from its mandate to invest in Government securities and other low duration avenues such as bank placements and ensuring low exposure to interest rate risk. The Fund had allocated ~92.5% of net assets in bank rated AAA, ~3.7% in TFC/Sukuks rated AA+ and above. Whereas, allocation in the Commercial Papers was ~2.6% rated AA+. The WAM of the Fund stood at 1 day in the end Jun'22 (Dec'21: 29days), while the duration of the Fund was also 1-day in the end Jun'22, limiting the exposure to credit and interest rate risk. The unit holding pattern of the Fund is highly concentrated with the top ten investors representing ~36.26% of the Fund's assets.
Going forward, 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 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 60bln at end Jun’22 and are spread across fifteen open-end mutual funds and two voluntary pension schemes.