The Pakistan Credit Rating Agency Limited
30-Jun-18
Analyst
Muhammad Usman
muhammad.usman@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 (30-Jun-18 ) |
Previous (12-Jul-17 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The fund's rating denotes a very strong capacity to manage relative stability in returns and very low exposure to risks. The investment mandate of the fund is to generate competitive returns consistent with low risk from major allocation towards high rated bank placements and debt instruments.
AGMMF intends to have a duration not exceeding 60 days. Fund possesses strong credit quality and sound liquidity profile. At end-Dec17, fund's 100% exposure was with banks as cash rated 'AA+' (61%) and 'AAA' (38%). On the monthly average basis, fund's exposure in Government securities remained above 50% in last 6 months and duration remained below 60 days. The unit holding pattern of the fund is concentrated with top10 investors representing 66% of the fund's assets, (of which ~19% are owned investments) which exposes the fund to a low level of redemption pressure.
Going forward, the rating remains dependent on maintaining the portfolio allocations towards government securities and banks with strong credit quality. Any material deviation from the investment philosophy will negatively impact the stability rating of the fund. PACRA would monitor compliance against agreed parameters on monthly average basis.
About
the Entity
Alfalah GHP Investment Management Limited, with Bank Alfalah Limited as one of the main sponsors, was incorporated on October 18, 2004, as a public limited company. The company commenced its operations in March 2005 and is registered as an Asset Management Company and Investment Advisor under the Non-Banking Finance Companies Regulations. The company operates through its head office in Karachi and have branches in the major cities.
Company’s eight-member BoD includes the CEO along with two representatives of BAFL, one representative of GHP Beteligungen Limited, one representative of MAB Investments and two directors are independent. The board is chaired by Mr. Adeel Khalid Bajwa. He is the CEO of Dhabi Group based in Abu Dhabi, United Arab Emirates. 1.2.2 The company is currently managing a diverse product slate of twenty funds. During CY17, a company launched a Shariah Compliant Fund of Funds.