logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
07-May-22

Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of Alfalah Islamic Rozana Amdani Fund

Rating Type Stability Rating
Current
(07-May-22 )
Previous
(11-Nov-21 )
Action Maintain Maintain
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Alfalah Islamic Rozana Amdani Fund (or the "Fund") is low risk profile. At the end Dec'21, the investment composition of the Fund was ~65.6% placed with banks rated AA and above, ~11% in TFCs/Sukuk, ~9.9% in DFIs. While ~12.5% were invested in CPIs. During CY21, the overall credit quality of the Fund remained strong. The duration and WAM of the Fund was 35 days limiting the exposure to interest rate and credit risk at end Dec'21. The top 10 investors concentration of the Fund, at Dec’21 was ~76.9%, giving rise to a high level of redemption pressure.
Going forward, the Fund intends to maintain its current asset allocation. 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 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 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.

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.