The Pakistan Credit Rating Agency Limited
07-Mar-25
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 Financial Sector Income Fund
| Rating Type | Stability Rating | |
|
Current (07-Mar-25 ) |
Previous (02-Jul-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alfalah Financial Sector Income Fund ("AFSIF"or the 'Fund') is a moderate risk profile Fund. The objective of the Fund is to provide income enhancement and preservation of capital by offering different plans that will invest in prime quality Financial Sector TFCs/Sukuks, Bank deposits, spread transactions, and short-term money market instruments. The AUMs of the Fund as of end Sep'24 was PKR 11,145mln. The credit quality of the Fund was in-line with its investment strategy, placing ~63.7% in Govt Sec/AAA rated avenues and ~32.8% in A+ rated category at the end of Sep’24. At the end of Sep’24, the Fund had allocated ~79.0% in bank placements, 8.2% in PIBs, ~5.5% in TFCs/Sukuks, while the remaining was invested in others.
Going forward, any material changes in the investment policy or the devised 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 221.03bln at end Sep'24.