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 Money Market 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 | - | - |
AGHP‐MMF intends to have duration not exceeding 60 days. Fund possesses strong credit quality and sound liquidity profile. At end‐Jun'19, fund's 89%
exposure was with banks as cash and duration remained below 60 days. The unit holding pattern of the fund is concentrated with top 10 investors
representing 55% of the fund's assets, which exposes the fund to a low level of redemption pressure.
Going forward, the rating remains dependent on maintaining the portfolio allocations towards government securities and banks with strong credit
quality. Any material deviation from the investment philosophy will negatively impact the stability rating of the fund. 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.