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
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 Islamic Rozana Amdani 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 Islamic Rozana Amdani Fund (or the "Fund") is a low-risk profile Fund. The objective of the Fund is to provide competitive returns and to meet the liquidity needs of investors by providing investors a daily dividend by investing in low-risk and highly liquid Shari’ah Compliant money market instruments. The assigned rating reflects the Fund's low credit and interest rate risk profile emanating from its investment policy. At the end of Dec'23, the Fund had allocated ~61% in Bank deposits, placements & other banking instruments in AA & AAA rated, ~17% in Sukuk which are AA category. The WAM stood at 42 days, limiting the Fund exposure to credit risk. The duration stood at 42 days at end Dec’23, limiting the Fund exposure to interest rate risk. The unit holding pattern of the Fund was ~59% representing top ten investors; representing a moderate level of redemption pressure, however it is manageable as fund has invested in liquid assets.
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.