The Pakistan Credit Rating Agency Limited
22-Sep-22
Analyst
Wajeeha Asghar
wajeeha.asghar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Upgrades Stability Rating of Alfalah GHP Cash Fund
| Rating Type | Stability Rating | |
|
Current (22-Sep-22 ) |
Previous (08-Apr-22 ) |
|
| Action | Upgrade | Maintain |
| Long Term | AA+(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Alfalah GHP Cash Fund (or the "Fund") is a low risk profile Fund. The assigned rating reflects the strong strength of the Fund's credit and interest rate risk profile. The Fund had allocated ~87% of net assets to Bank, mainly AAA rated banks, ~8.5% in TFC/Sukuk rated AA+ and above whereas ~2.3% in Commercial Papers. The Fund has shifted its allocation to TFC/Sukuk and CPs resultantly, the duration of the Fund increased to 5days (Dec'21: 1 day), hence limiting the exposure to interest rate risk. Whereas, the WAM of the Fund was also stood at 5 days, limiting the exposure to credit risk. The unit holding pattern of the Fund were ~76% representing top ten investors.
Going forward, the fund intends to maintain the current allocation strategy. Material changes in the funds asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
About
the Entity
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 60bln at end Jun’22 and are spread across eighteen open-end mutual funds and two voluntary pension schemes.