The Pakistan Credit Rating Agency Limited
09-Apr-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Alfalah GHP Money Market Fund
| Rating Type | Stability Rating | |
|
Current (09-Apr-24 ) |
Previous (13-Oct-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alfalah GHP Money Market Fund (or the "Fund") is a low risk profile fund. The objective of the Fund is to generate competitive returns consistent with low risk from a portfolio constituted of short term instruments including cash deposits, money market placements and government securities. The Fund will maintain a high degree of liquidity at all times. The rating reflects the strong strength of the Funds credit and interest rate risk profile. At the end of Dec'23, the Fund had allocated ~53% in Government securities (PIBs & T-Bills), ~46% in Bank deposits, placements & other banking instruments in AA+ rated. The duration stood at 66 Days, limiting the Fund exposure to interest rate risk. The WAM stood at 66 days in the end Dec’23, limiting the Fund exposure to credit risk. During CY23,the Fund generated a return of 21.5% while the benchmark of the fund generated 21.4%. The unit holding pattern of the Fund stood at ~26% representing top ten investor concentration, keeping redemption pressure to a low level.
Going forward, any material changes in the investment policy and/or compliance with the rating criteria for the assigned rating would have an impact on the ratings.
About
the Entity
Alfalah Asset Management Limited (Formerly: 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 149bln at end Dec'23.