The Pakistan Credit Rating Agency Limited
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Afnan Iqbal

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PACRA Maintains Stability Rating of Alfalah GHP Money Market Fund

Rating Type Stability Rating
(17-Apr-20 )
(17-Oct-19 )
Action Maintain Maintain
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects the strength of the fund's credit and interest rate risk profile. The fund's good credit quality and sound liquidity profile emanates primarily from its mandate to invest in government securities and other low duration avenues such as bank placement's and ensuring low exposure to interest rate risk. At end Dec-19, 82% of fund's assets were allocated to bank placements, whereas 14% to T-Bills. Average duration of the fund remained within 45 days. Fund's unit holding pattern is moderately concentrated with top 10 investors representing 48% of the net assets.
Going forward, the fund intends to increase allocation towards T-Bills. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

About the Entity
Alfalah GHP Investment Management Limited (AGIML), was incorporated on October 18, 2004 as an unlisted public limited company. The company was established as joint venture NBFC by Bank Alfalah Limited and GHP Arbitrium. Bank Alfalah is one of the largest banks in Pakistan with a network of over 600 branches. Major shareholders of the company are M/s Bank Alfalah Limited (40.22%), M/s MAB Investment Inc (41.72%) and M/s GHP Beteiligungen AG (14.36%).

The company's eight-member board comprise the CEO and chairman. There are five non-executive directors, two independent directors and one executive director. The CEO, Ms. Maheen Rahman has over eighteen years of experience in investment banking, research and asset management. The Chairperson of the Board of Directors is Ms. Dominique Liana Russo, she is the CEO of Dhabi Holdings PJSC. The Board has immense expertise in financial sector, research and analysis, banking and asset management. With overall assets under management of ~PKR 41,973 mln at end Dec-19, the Company is currently managing fifteen open-end funds and two voluntary pension schemes.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.