The Pakistan Credit Rating Agency Limited
13-Apr-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of Alfalah GHP Money Market Fund
| Rating Type | Stability Rating | |
|
Current (13-Apr-23 ) |
Previous (13-Oct-22 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alfalah GHP Money Market Fund ( "AMMF" or the "Fund"). The objective of the Fund is to generate competitive returns consistent with low risk from a portfolio constituted of short term instruments including cash deposits, money market placements and government securities. The Fund will maintain a high degree of liquidity at all times. The rating reflects the strong strength of the Funds credit and interest rate risk profile. At end Dec'22, ~65.1% of the Fund's assets were allocated to T bills, ~26.1% in banks, ~1.3% in CPs and the remaining were invested in Others. The duration stood at 18 days, at end Dec'22; limiting the exposure to interest rate risk. While the WAM of the Fund remained 17 days, at end Dec'22; limiting the exposure to credit risk. The Fund's unit holding pattern is moderately concentrated with top 10 investors representing ~32.57% of the net assets, limiting the Fund to redemption pressure.
Going forward, the Fund intends to increase allocation towards banks placements. 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.