Muhammad Zain Ayaz
PACRA Maintains Stability Rating of Alfalah GHP Sovereign Fund
|Rating Type||Stability Rating|
The rating reflects adequate strength of the Fund's credit and interest rate risk profile. At end Jun'21, ~51% of funds were placed with banks rated 'AA+' and above while ~11% invested in government guaranteed, and ~9.6% in private TFCs/sukuks. The Fund also invested in ~25.3% in PIBs. The offering document of the Fund allows it to invest in banks rated 'AA-' and above. The unit holding pattern of the Fund is moderately concentrated with top ten investors representing ~55% of the Fund's assets, which exposes the fund to moderate level of redemption pressure. The WAM of the Fund remained 889 days, at Jun'21, exposing the Fund to interest rate volatility risk.
Going forward, the Fund intends to increase its exposure in PIB's. Material changes in the funds asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
Alfalah GHP Investment Management Limited was incorporated on October 18, 2004 as an unlisted public limited company and is licensed by the Securities and Exchange Commission of Pakistan to manage open-ended mutual funds and offer investment advisory services. The Company was established as joint venture Non-Banking Finance Company by Bank Alfalah Limited and GHP Arbitrium. The Company provides a wide range of mutual funds and pension funds both in conventional and Shariah compliant category. The Company also provides investment advisory services to HNW individuals and corporate clients.
The Company’s board of directors comprises eight members including the Chairman and the Chief Executive Officer. The board is dominated by representatives of MAB Investments and Bank Alfalah Limited. The board has two independent and five non-executive directors. The board members possess strong profile and skills suited to the financial services industry. Assets under management of the Company stood at ~PKR 54,965mln at end Jun’21 and are spread across fifteen open-end mutual funds and two voluntary pension schemes.