The Pakistan Credit Rating Agency Limited
30-Jun-18
Analyst
Ayesha Qasim
ayesha.qasim@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 Multiplier 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 objective of the fund is to generate competitive returns while ensuring capital preservation by constructing a portfolio of high-quality debt securities and liquid money market instruments and placements.
The rating reflects moderate credit quality and sound liquidity profile. At end-Dec-17, fund's exposure with government securities was 2%, whereas exposure as cash and bank placements were 54% with banks rated majorly 'AA+' and above. The exposure with TFCs and sukuks were 35% with the minimum rating of 'A+' & above. Another major avenue is margin trading system (end-Dec'17: 4%) which, due to self-liquidating nature, possesses less risk over short tenure. The fund carries redemption risk as the unit holding pattern of the fund is concentrated, with the top 10 investors representing 72% of the net assets.
Going forward, the rating remains dependent on maintaining the majority of its net assets in government securities and maximum exposure of 20% in debt instruments having good credit quality. The investments in bank placement would also not be lower than 'A+' rated institutions.
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.