PACRA Maintains Stability Rating of Alfalah GHP Income Multiplier Fund
|Rating Type||Stability Rating|
Alfalah GHP Income Multiplier Fund (or the "Fund") is a adequate risk profile Fund. The assigned rating reflects the adequate strength of the Fund's credit and interest rate risk profile. The Fund had allocated ~50% of net assets in Banks, mainly AAA rated banks, ~26.6% in T-bills whereas ~20% in TFC. The duration of the Fund stood at 41 days at the end Jun'22 (Dec'21: 234 days), exposing the Fund to interest rate risk. The WAM of the Fund increased to 459 days (Dec'21: 234days), exposing high level of credit risk. However, investment in Govt Securities, the credit risk is manageable. The unit holding pattern of the Fund was highly concentrated where ~84% were represented by top 10 investors.
Going forward, 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.