Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains the Stability Rating of Alfalah GHP Islamic Income Fund.
Rating Type | Stability Rating | |
Current (17-Oct-19 ) |
Previous (17-Apr-19 ) |
|
Action | Maintain | Upgrade |
Long Term | AA-(f) | AA-(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
The rating reflects fund's good credit quality and sound liquidity profile emanating from its 47% exposure in cash. The remaining 42% assets of the fund
were invested in good quality corporate sukuks having rating of 'AA‐' and above at end Jun‐19. Meanwhile, the rating incorporates the fund's low
exposure to interest rate volatility. The unit holding pattern of the fund is highly concentrated with top 10 investors representing 71% 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 was incorporated amid October 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 twenty-one funds.
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.