Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains the Stability Rating of Alfalah GHP Cash Fund.
Rating Type | Stability Rating | |
Current (17-Oct-19 ) |
Previous (17-Apr-19 ) |
|
Action | Maintain | Downgrade |
Long Term | AA(f) | AA(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
The rating reflects the funds investment strategy to maintain the duration of the fund. During the year, the fund's exposure reflected strong credit profile
emanating from its investment policy to invest in high credit quality instruments with portfolio duration not exceeding 45 days. At end‐Jun'19, fund maintained
sizeable exposure in banks (Jun'19: 97%). The duration remained less than 60 days in the past 6 months. The fund remains prone towards redemption risk as top
10 investors represent 98.89% of the fund size.
Going forward, the rating remains dependent on maintaining exposure with high credit quality financial institutions with portfolio duration less than 60 days.
Meanwhile, the remaining assets of the fund must be placed with scheduled banks having very strong credit quality. PACRA would monitor compliance against
agreed parameters on monthly average basis.
About
the Entity
Alfalah GHP Investment Management Limited was incorporated amid October 2004, as a public limited company. The major shareholders of the company are Bank Alfalah Limited with ~ 40% stake followed by MAB Investment Inc with ~ 42% stake. The company commenced its operations in March 2005 and is registered as an Asset Management Company and Investment Advisor under the Non-Banking Finance Companies Regulations. The company operates through its head office in Karachi and have branches in the major cities. The company is currently managing a diverse product slate of twenty-one funds.
Company’s eight-member BoD includes the CEO along with two representatives of BAFL, one representative of GHP Beteligungen Limited, one representative of MAB Investments and two directors are independent. The board is chaired by Mr. Adeel Khalid Bajwa. He is the CEO of Dhabi Group based in Abu Dhabi, United Arab Emirates.