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