PACRA Maintains Stability Rating of Alfalah GHP Income Multiplier Fund

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PACRA Maintains Stability Rating of Alfalah GHP Income Multiplier Fund

December 3, 2018

Lahore, December 03, 2018 (PPI-OT): The primary investment objective of the fund is to generate stable and consistent returns while seeking capital growth through a diversified portfolio of high-quality debt securities and liquid money market instruments and placements.

The rating reflects the moderate credit quality and liquidity profile of the fund. At the end of Jun-18, fund’s exposure was ~29% as cash with banks rated ‘AA-‘ and above. The exposure with TFCs/Sukuks was ~68% with the minimum rating of ‘A+’ and above. The unit holding pattern of the fund is concentrated with top 10 investors representing ~75% of the fund’s assets, (of which ~46% are owned investments) which exposes the fund to a low level of redemption pressure.

Going forward, the fund intends to maintain its exposure with the same investment avenues. The fund will invest in debt instruments having the credit rating not less than A-. 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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