The Pakistan Credit Rating Agency Limited
17-Oct-19
Analyst
Afnan Iqbal
afnan.iqbal_old@pacra.com_old
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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 Sovereign Fund.
| Rating Type | Stability Rating | |
|
Current (17-Oct-19 ) |
Previous (17-Apr-19 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
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‐Jun'19. Fund’s exposure in T‐Bills was 43%. The remaining assets were invested in TFC/Sukuks
(9%) and cash balance (36%) with banks having rating of 'AA‐' and above. The Fund maintained its duration of less than 2 years in the last 4 quarters. The
unit holding pattern of the fund represents redemption risk as top 10 investors concentration is 80%.
Going forward, the rating remains dependent on maintaining at least 70% allocation towards government securities on monthly average basis with portfolio
duration not exceeding 2 years. PACRA would monitor compliance against agreed parameters on monthly average basis.
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.