The Pakistan Credit Rating Agency Limited
10-Aug-18
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintain Asset Manager Rating of Alfalah GHP Investment Management Limited
| Rating Type | Asset Manager | |
|
Current (10-Aug-18 ) |
Previous (22-Dec-17 ) |
|
| Action | Maintain | Maintain |
| AM Rating | AM2+ | AM2+ |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects the company’s governance structure, experience management, structured investment process, diversified fund slate and sound quality of systems and processes. The affiliation of a renowned bank, Bank Alfalah, provides support to the rating. The rating incorporates the attrition in the AUMs of the company and the average performances of the funds. The company plans to launch prospective funds in the Asset Allocation category which would provide support in this area. The company has an adequate foothold in the avenue of retail penetration and the focus towards increasing the outreach to retail clientele will draw support from the parent bank’s network. The strengthening of the sales team should further benefit in augmenting the retail penetration. The management of the company has long association with the company and has shown stability.
The rating is dependent on the company’s ability to capitalize on the parent bank’s distribution networks for retail penetration. Meanwhile, the ability of the company to align its marketing and distribution strategy with the operations in the current competitive environment would remain critical for enhancing the system share.
About
the Entity
Alfalah GHP Investment Management Limited, with Bank Alfalah Limited as one of the main sponsors, was incorporated on October 18, 2004 as a public limited company. 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.
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. 1.2.2 The company is currently managing a diverse product slate of twenty funds. During CY17, company launched a Shariah Compliant Fund of Funds.