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 Islamic 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 provide investors with a reasonable rate of return along with long-term capital appreciation by investing in a diversified portfolio of Shariah-compliant investment instruments.
The rating reflects fund's good credit quality and sound liquidity profile emanating from its 74% exposure as cash. The remaining 25% assets of the fund were invested in good quality corporate sukuks having a rating of 'AA-' and above at end-Dec-17. Meanwhile, the rating incorporates the fund's low exposure to interest rate volatility. The unit holding pattern of the fund is highly concentrated with top10 investors representing 87% of the fund, which represents redemption risk.
Going forward, the management intends to maintain the current investment strategy. 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, the company launched a Shariah Compliant Fund of Funds.