The Pakistan Credit Rating Agency Limited
30-Jun-18
Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of Alfalah GHP Income Fund
| Rating Type | Stability Rating | |
|
Current (30-Jun-18 ) |
Previous (12-Jul-17 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The investment objective of the fund is to earn competitive returns for its unit holders by constructing a low risk and liquid portfolio.
The rating reflects the strong credit quality of the portfolio. The portfolio depicts diversification across asset classes. Fund took 50% exposure in cash with banks. The majority of exposure was with banks rated 'AA+' and above. The remaining assets of the fund were exposed with T-Bills (5%), TFCs (40%) having credit ratings of 'A+' and above, while 1% of the net assets were exposed to MTS transactions, which due to its self-liquidating nature possess less risk over short tenure. The fund is exposed to redemption pressure as unit holding pattern of the fund is highly concentrated with the top10 investors representing 83% of the fund's assets.
Going forward, the fund intends to maintain its exposure towards debt instruments - rated 'AA-' and above. The remaining net assets of the fund would be placed with good quality banks. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.
About
the Entity
Alfalah GHP Investment Management Limited, with Bank Alfalah Limited as one of the main sponsors, was incorporated on October 18, 2004, as a public limited company. The company commenced its operations in March 2005 and is registered as an Asset Management Company and Investment Advisor under the Non-Banking Finance Companies Regulations. The company operates through its head office in Karachi and have branches in the major cities.
Company’s eight-member BoD includes the CEO along with two representatives of BAFL, one representative of GHP Beteligungen Limited, one representative of MAB Investments and two directors are independent. The board is chaired by Mr. Adeel Khalid Bajwa. He is the CEO of Dhabi Group based in Abu Dhabi, United Arab Emirates. 1.2.2 The company is currently managing a diverse product slate of twenty funds. During CY17, a company launched a Shariah Compliant Fund of Funds.