The Pakistan Credit Rating Agency Limited
04-Feb-19
Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Asset Manager Rating of Alfalah GHP Investment Management Limited
| Rating Type | Asset Manager | |
|
Current (08-Feb-19 ) |
Previous (10-Aug-18 ) |
|
| Action | Maintain | Maintain |
| AM Rating | AM2+ | AM2+ |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating incorporates the company's strong ownership and governance profile due to its association with a renowned financial institution – Bank Alfalah Limited. The rating reflects the clear organizational structure, well-diversified fund slate, strong risk management framework, seasoned management team, structured investment process and quality support systems.
The rating reflects the company’s growing market share in its assets under management and its prominent position in the investment advisory domain. At end Dec-18, the SMA portfolio stood at ~14bln and assets under management stood at ~PKR 31bln (~PKR 26bln in Dec-17) with system share of ~5.4%. The top ten investor concentration stood at ~65%, represents moderate redemption pressure. The company’s reported equity stood at ~PKR 810mln as at end Sep-18.
The rating is dependent on the organization's capacity to effectively execute its business plan leveraging on group synergies to augment its system share, while reducing investor concentration. In the meantime, establishing a strong and stable fund performance would be vital.
About
the Entity
Alfalah GHP Investment Management Limited was incorporated on October 18, 2004, as a public limited company. The major shareholders of the company are Bank Alfalah Limited with ~ 40% stake followed by MAB Investment Inc with ~ 42% stake. 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. The company is currently managing a diverse product slate of seventeen funds.
Company’s eight-member BoD includes the CEO along with two representatives of BAFL, one representative of GHP Beteligungen Limited and two representatives of MAB Investments. The board is chaired by Mr. Adeel Khalid Bajwa. He is the CEO of Dhabi Group based in Abu Dhabi, United Arab Emirates.