Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Alfalah GHP Income Multiplier Fund
Rating Type | Stability Rating | |
Current (09-Oct-24 ) |
Previous (09-Apr-24 ) |
|
Action | Maintain | Maintain |
Long Term | A+(f) | A+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Alfalah GHP Income Multiplier Fund (or the "Fund") is a moderate risk profile Fund. The primary investment objective of the Fund is to aim to generate stable and consistent returns while seeking capital growth through a diversified portfolio of high-quality debt securities and liquid money market instruments and placements. The rating reflects the adequate strength of the Fund's credit and interest rate risk profile emanating from its investment policy. At end Jun'24, ~49.2% of Fund's size was placed in PIBs, ~21.0% in Bank placements, ~15.5% in TFC/Sukuks, ~9.1% in Govt backed/GoP Ijarah Sukuk, and ~5% in other assets. The credit quality of the Fund was ~66.7% in AAA, ~18.9% in A, ~9.5% in A+, ~4.8% in other rated avenues, and ~0.1% in AA- as at end Jun'24. The WAM of Fund was 1183 days, at the end Jun'24 and Duration days were 90, exposing the Fund to very high credit risk and low interest rate risk. The credit risk is managed through investment in Govt Securities. The unit holding pattern of the Fund is moderately concentrated with top ten investors representing ~59.75% of the Fund's assets, which exposes the Fund to moderate level of redemption pressure.
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 189bln at end Jun'24.