The Pakistan Credit Rating Agency Limited
28-Mar-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 Cash Fund
| Rating Type | Stability Rating | |
|
Current (28-Mar-24 ) |
Previous (28-Sep-23 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alfalah GHP Cash Fund (or the "Fund") is low risk profile fund. The objective of Fund is to provide regular stream of income at competitive rate of return while preserving capital to the extent possible by investing in assets with low risk. A high degree of liquidity shall be maintained by the Fund from a portfolio constituted mostly of money market securities and placements. The Fund's good credit quality and sound liquidity profile emanate primarily from its mandate to invest in Government Securities and in bank deposits. At end Dec'23, the Fund had allocated ~53% in T Bills, ~37.5% in Bank deposits, placements & other banking instruments in AA+ rated, ~8% in Corporate short term sukuks which are AA rated. The duration and WAM of the Fund stood at 75 days at the end of Dec’23, limiting the exposure to interest rate and credit risk. The unit holding pattern of the Fund was ~53% representing top ten investor concentration; exposing the Fund to moderate 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.