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The Pakistan Credit Rating Agency Limited
Press Release

Date
17-Oct-19

Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+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 the Stability Rating of Alfalah GHP Income Fund.

Rating Type Stability Rating
Current
(17-Oct-19)
Previous
(17-Apr-19)
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects strong credit quality of the portfolio. The portfolio depicts diversification across asset classes. Fund took 52% exposure in cash with
banks. The majority of exposure was with banks rated 'AA+' and above. The remaining assets of the fund were exposed with TFCs (28%), PIBs (15%).
The fund is exposed to redemption pressure as unit holding pattern of the fund is highly concentrated with the top 10 investors representing 93% of
the fund's assets.
Going forward, the fund intends to maintain its exposure towards cash with banks ‐ rated 'AA‐' and above. The remaining net assets of the fund would
be placed with TFCs/Sukuks. The fund is also planning to take some exposure in government securities. Material changes in the fund's asset allocation
strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.

About the Entity
Alfalah GHP Investment Management Limited was incorporated amid October 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-one 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.