Rai Umar Zafar
PACRA Upgrades Asset Manager Rating of Alfalah GHP Investment Management Limited
|Rating Type||Asset Manager|
The rating reflects AGIML's well-structured investment management framework, sound operating platform, and an experienced management team. It incorporates well diversified product slate and enhanced integration with the parent bank. Timely launch of new funds has attracted decent investments; hence, lending support towards enhancement of the system share. Retail portion adds diversity to the AUM base and provides support to the business. The company has planned to strengthen its marketing team to further penetrate the retail market. The fund performance has consistently remained above the set benchmarks. However, consistency in the performance ranking in comparison to industry is yet to be seen. Furthermore, it plans to form a separate research team which will support the investment decision making process.
The rating is dependent on the company's ability to successfully capitalize on its parent bank's network for achieving growth in AUM's while improving fund mobilization from retail segment. Meanwhile, consistency of fund performance remains crucial.
Commencing operations in Mar 05, Alfalah GHP Investment Management Limited (AGIML) is 82% owned by Abu Dhabi Group, including 40% through Bank Alfalah Limited (BAFL) and 42% through MAB Investments Inc. Meanwhile, GHP Arbitrium Holdings Limited (GHP) owns 14% stake. BAFL is the sixth largest commercial bank of the country with a branch network of over 500 branches. AGIML is currently managing sixteen open-end funds with cumulative assets under management of PKR 36bln at end-Mar17.
The company's six member BoD comprises CEO, two representatives of BAFL, one representative of GHP Arbitrium Holdings Limited, one representative of MAB Investments and one independent director. The board is chaired by Mr. Ali Sultan, Group Head - Treasury, Investments & Financial Institutions, Bank Alfalah Limited. The CEO of AGIML, Ms. Maheen Rahman, has over 17 years of rich local and international experience in the financial services. She is assisted by an able team.