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 Income Multiplier Fund
| Rating Type | Stability Rating | |
|
Current (13-Apr-23 ) |
Previous (13-Oct-22 ) |
|
| Action | Maintain | Maintain |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alfalah GHP Income Multiplier Fund ( "AIMF" or the "Fund") is a medium-risk profile fund. The primary investment objective of the fund is to aim to generate stable and consistent returns while seeking capital growth through a diversified portfolio of high-quality debt securities and liquid money market instruments and placements. The rating reflects the adequate strength of the Fund's credit and interest rate risk profile emanating from its investment policy. At end Dec'22, ~98.1% of Fund's size was placed in banks rated 'A+' and above, whereas ~1.9% in Others. The WAM and duration of the Fund remained 1 day, at Dec'22, limiting the Fund to credit risk and interest rate risk. The unit holding pattern of the Fund is highly concentrated with top ten investors representing ~98.19% of the Fund's assets, which exposes the Fund to high level of redemption pressure.
Going forward, the Fund should diversify its portfolio by investing in different avenues. 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.