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The Pakistan Credit Rating Agency Limited
Press Release

Date
22-Dec-17

Analyst
Ahmed Sheikh
ahmed.sheikh@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 Asset Manager Rating of Alfalah GHP Investment Management Limited

Rating Type Asset Manager
Current
(22-Dec-17)
Previous
(16-May-17)
Action Maintain Upgrade
AM Rating AM2+ AM2+
Outlook Stable Stable
Rating Watch - -

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. The company aims to attract decent investments considering the current attrition in the AUM base owing to lackluster stock market performance. 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. Lately, Fund performance has remained above the set benchmarks. However, consistency in the performance in comparison to industry requires some time. Furthermore, it plans to form a separate research team of experienced resource that 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.

About the Entity
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 27bln at end-Oct17.

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.

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.