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The Pakistan Credit Rating Agency Limited
Press Release

Date
03-Dec-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 Cash Fund

Rating Type Stability Rating
Current
(03-Dec-18 )
Previous
(30-Jun-18 )
Action Maintain Maintain
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The investment objective of Alfalah GHP Cash Fund (AGCF) is to provide a regular stream of income at a comparative rate of return while preserving capital to the extent possible by investing in assets with low risk and a high degree of liquidity from a portfolio constituted of mostly money market securities and placements.

The rating reflects the change in the investment strategy to reduce the duration of the fund. During the year, the fund's exposure reflected strong credit profile emanating from its investment policy to invest in high credit quality instruments with portfolio duration not exceeding 45 days. At the end of Jun-18, the fund maintained ~99% exposure with banks. The duration remained less than 60 days in the past 6 months. The unit holding pattern of the fund is moderately diversified with top 10 investors representing ~95% of the fund's units of which ~68% is the group's own investments. 

Going forward, the rating remains dependent on maintaining exposure with high credit quality financial institutions with a portfolio duration of fewer than 60 days. Meanwhile, the remaining assets of the fund must be placed with the scheduled banks having strong credit quality.

About the Entity
Alfalah GHP Investment Management Limited was incorporated on October 18, 2004, as a public limited company. The major shareholders of the company are Bank Alfalah Limited with ~ 40% stake followed by MAB Investment Inc with ~ 42% stake. 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. The company is currently managing a diverse product slate of twenty funds.

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.

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.