Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Alfalah GHP Sovereign Fund
Rating Type | Stability Rating | |
Current (17-Apr-20 ) |
Previous (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. At end Dec-19, 82% of fund's assets were invested in T-Bills while remaining funds were allocated to PIBs. Duration of the fund remained high at and Dec-19 (365 days), exposing it to interest rate risk. The unit holding pattern of the fund is moderately concentrated with top ten investors representing ~57% of the fund's assets, which exposes the fund to moderate level of redemption pressure.
Going forward, the plan intends to reduce its allocation in T-Bills by shifting towards banks. 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.