The Pakistan Credit Rating Agency Limited
29-Mar-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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 GHP Cash Fund
| Rating Type | Stability Rating | |
|
Current (29-Mar-23 ) |
Previous (22-Sep-22 ) |
|
| Action | Maintain | Upgrade |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects strong risk profile of the Alfalah GHP Cash Fund's (or the "Fund"). The Fund's good credit quality and sound liquidity profile emanate primarily from its mandate to invest in Government Securities and in bank deposits. At end Dec'22, ~50.8% of Funds assets were allocated to T Bills, ~38.4% in Banks, ~3.6% in CPs whereas the remaining was invested in Others. As per the investment policy, the weighted average maturity of the Fund did not exceed 90 days during the period ending on 31st Dec'22. While at end Dec'22, the WAM and Duration of Fund stood at 19 days, limiting the exposure to credit risk and interest rate risk. The unit holding pattern of the Fund was ~77.68% representing top ten investor concentration; exposing the Fund to a moderate level of redemption pressure.
Going forward, the Fund intends to maintain the current allocation strategy. 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.