The Pakistan Credit Rating Agency Limited
14-Apr-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Alfalah Islamic Rozana Amdani Fund
| Rating Type | Stability Rating | |
|
Current (14-Apr-23 ) |
Previous (14-Oct-22 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alfalah Islamic Rozana Amdani Fund ("AIRAF" 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 strategy. The Fund had allocated ~83.4% in bank placements mainly in AA and above rated whereas ~7.2% in TFCs/Sukuk, at end, Dec’22. The duration of the Fund stood at 12 days at end Dec’22, limiting the exposure to interest rate risk. While the WAM of the Fund stood at 14 days at end Dec’22, limiting the exposure to credit risk. The unit holding pattern of the Fund were ~59.19% representing a moderate level of redemption pressure. The Fund remained compliant with rating criteria for the assigned ratings during the period under review.
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 75bln at end Dec'22.