PACRA Maintains Stability Rating of Alfalah GHP Income Fund : AsiaNet-Pakistan

PACRA Maintains Stability Rating of Alfalah GHP Income Fund

December 3, 2018 | General Business News | Share:

Lahore, December 03, 2018 (PPI-OT): The investment objective of Alfalah GHP Income Fund (AGIF) is to minimize risk, construct a liquid portfolio of fixed income instruments and provide competitive returns to the Unit Holders. The management team shall ensure the active implementation of prudent investment practices, the highest professional standards and compliance with applicable laws.

The rating reflects the good credit quality of the fund’s portfolio. The portfolio depicts diversification across asset classes. Fund took ~76% exposure in cash with banks. The majority of exposure was with banks rated ‘AA+’ and ‘AA-‘ . The remaining ~22% assets of the fund were invested with TFCs having credit ratings of ‘A+’ and above. %). The unit holding pattern of the fund is concentrated with top 10 investors representing ~91% of the fund’s assets, (of which ~67% are owned investments) which exposes the fund to a low level of redemption pressure.

Going forward, the fund intends to enhance its exposure towards cash with banks – rated ‘AA-‘ and above. The remaining net assets of the fund would be placed with good quality TFCs/Sukuks. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remains critical for the rating.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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Category: General Business News