PACRA Maintains Stability Rating of Alfalah GHP Islamic Income Fund
|Rating Type||Stability Rating|
Alfalah GHP Islamic Income Fund (or the "Fund") is a medium risk profile Fund. The assigned rating reflects the adequate strength of the Fund's credit and interest rate risk profile. The Fund had allocated ~52% of its net assets to banks, mainly AAA rated banks, ~21% in TFCs rated AA+ and above whereas ~5.9% in commercial papers. The duration and the WAM of the Fund decreased to 1 day (Dec'21: 26days) limiting the exposure to interest rate and credit risk. The main reason for the decreased WAM was the exposure in bank placements. The unit holding pattern of the Fund was lightly concentrated where ~35% were represented by top 10 investors.
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.
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 60bln at end Jun'22 and are spread across fifteen open-end mutual funds and two voluntary pension schemes.