PACRA Maintains Stability Rating of Alfalah GHP Income Multiplier Fund
|Rating Type||Stability Rating|
The rating reflects the moderate strength of the funds credit and interest rate risk profile. At end Jun'20, ~33% of funds assets were invested in T-Bills, 16% of funds were placed in banks rated 'AA' and ~41% of funds were exposed to TFCs/Sukuks primarily rated 'AA' and above. Duration of the fund remained high at and Jun'20 (133 days), exposing it to interest rate risk however, comfort arises from credit and liquidity risk perspective due to sizeable allocation in T-Bills. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~87% of the fund's assets, which exposes the fund to high level of redemption pressure.
Going forward, the fund intends to maintain its asset allocation in government securities and corporate papers. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
Alfalah GHP Investment Management Limited was incorporated on October 18, 2004 as an unlisted public limited company and is licensed by the Securities and Exchange Commission of Pakistan to manage open-ended mutual funds and offer investment advisory services. The Company was established as joint venture Non-Banking Finance Company by Bank Alfalah Limited and GHP Arbitrium. The Company provides a wide range of mutual funds and pension funds both in conventional and Shariah compliant category. The Company also provides investment advisory services to HNW individuals and corporate clients.
The Company’s board of directors comprises eight members including the Chairman and the Chief Executive Officer. The board is dominated by representatives of MAB Investments and Bank Alfalah Limited. The board has two independent and five non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 40,079mln at end Jun’20 and are spread across fourteen open-end mutual funds and two voluntary pension schemes.