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 Sovereign 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 Sovereign Fund (or the "Fund") is a low risk profile Fund. The objective of the Scheme is to deliver optimal risk adjusted returns by investing mainly in mix of short to long term Government Securities and other debt Instruments. The rating reflects low credit and interest rate risk profile of the Fund's. At the end of Dec'23, the Fund had allocated ~90% in Government securities (PIBs, Floater PIBs & T-Bills), ~7% in Bank deposits, placements & other banking instruments in AA- rated, and ~3% in other assets. The duration of the Fund at the end Dec’23 was 219 days, limiting the fund exposure to interest rate risk. The WAM of the Fund was 1,471 days at the end Dec’23, exposing the Fund to high level of credit risk, however considering the investment in Governments securities the credit risk is at manageable level. The unit holding pattern of the Fund concentration was 47% represented by top ten Investors; giving rise to a medium level of redemption pressure which is manageable on the back of strong liquidity profile.
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.