The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of Alfalah Islamic Rozana Amdani Fund

Rating Type Stability Rating
(13-Oct-23 )
(14-Apr-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") reflects the Fund's low-risk profile. The objective of Alfalah Islamic Rozana Amdani 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 Jun'23, the Fund had allocated ~81.2% in Bank deposits, placements & other banking instruments in AA rated and above, ~17.1% in TFC/Sukuk majorly in AA rated. The WAM stood at 28 days, limiting the Fund exposure to credit risk. The duration stood at 1 days at end Jun’23, limiting the Fund exposure to interest rate risk. The fund's return stood at 17.1% against the benchmark return of 6.2%. The unit holding pattern of the Fund was ~62.5% representing top ten investors; representing a moderate level of redemption pressure, however it is manageable as fund has invested in liquid assets.
Going forward, the Fund intends to maintain the current allocation strategy. 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 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 99.4bln at end June'23.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.