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The Pakistan Credit Rating Agency Limited
Press Release

Date
30-Jun-18

Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com

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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 Sovereign 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 objective of the fund is to deliver optimal risk-adjusted returns by investing mainly in a mix of short to long-term government securities.

The rating reflects the fund's strong credit profile emanating from its investment policy to invest at least 70% of the net assets in Government Securities transactions based on quarterly average investment. At end-Dec17. Fund’s exposure in T-Bills was 40%. The remaining assets were invested in TFC/Sukuks (2.8%) and cash balance (56%) with banks majorly having 'AA+' rating. On the monthly average basis, the fund maintained 70% exposure in Government securities in the last 2 quarters. Fund also maintained its duration of fewer than 2 years in the last 4 quarters. The unit holding pattern of the fund represents redemption risk as top 10 investors concentration was 64%.
Going forward, the rating remains dependent on maintaining at least 70% allocation towards government securities on the monthly average basis with portfolio duration not exceeding 2 years. PACRA would monitor compliance against agreed parameters on a 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.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.