PACRA Maintains Stability Rating of Alfalah GHP Income Multiplier Fund
|Rating Type||Stability Rating|
The primary investment objective of the fund is to generate stable and consistent returns while seeking capital growth through a diversified portfolio of high-quality debt securities and liquid money market instruments and placements.
The rating reflects the good credit quality and liquidity profile of the fund. At the end of Dec-18, fund's exposure was ~57% as cash with banks rated 'AA-' and above. The exposure with TFCs/Sukuks was ~37% with the minimum rating of 'A+' and above. The unit holding pattern of the fund is concentrated with top 10 investors representing ~86% of the fund's assets, (of which ~55% are owned investments) which exposes the fund to a low level of redemption pressure.
Going forward, the fund intends to decrease its exposure as cash with banks. The fund is seeking to take some exposure in government securities, also enhancing its exposure in debt instruments. The fund will be investing in debt instruments having the credit rating not less than A+. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.
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 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.