PACRA Upgrades Stability Rating of Alfalah GHP Income Fund

Lahore, March 24, 2023 (PPI-OT): The rating reflects the adequate risk profile of the Fund’s credit and interest rate risk profile. At the end Dec’22, ~39.4%% of Funds assets were invested in TFC/Sukuk, ~25.7% of funds were exposed to T-Bills, ~16.9% in Banks, ~5.6% in CPs, ~4.9% in PIBs whereas remaining was invested in Others. During CY22, the Fund remained compliant with the credit quality criteria for the assigned rating and had investments, on average ~44% in Govt.

securities which further provides comfort to the assigned rating upgrade. The WAM of the Fund was 748 days, at Dec’22, exposing the fund to credit risk which is manageable due to investment in the Govt. securities. The Duration stood at 72 days, at end Dec 22. The unit holding pattern of the Fund is highly concentrated with top ten investors representing ~81.13% of the Fund’s assets, however, related party exposure is ~43% which is limiting the redemption pressure.

Going forward, the Fund intends to increase exposure in Govt. securities keeping in view the authorized investment allocations and market expectations. Material changes in the Fund’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com

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