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The Pakistan Credit Rating Agency Limited
Press Release

Date
17-Apr-19

Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of Alfalah GHP Income Multiplier Fund

Rating Type Stability Rating
Current
(17-Apr-19)
Previous
(03-Dec-18)
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

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.

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 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.

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.