PACRA Maintains Stability Rating of Alfalah GHP Islamic Income Fund

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PACRA Maintains Stability Rating of Alfalah GHP Islamic Income Fund

December 3, 2018

Lahore, December 03, 2018 (PPI-OT): The investment objective of Alfalah GHP Islamic Income Fund (AGIIF) is to minimize risk, construct a liquid portfolio of shariah approved fixed income investments 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 fund’s good credit quality and sound liquidity profile emanating from its ~65% exposure as cash with banks. The other ~25% assets of the fund were invested in good quality corporate sukuks having rating of ‘A-‘ and above at the end of Jun-18. Meanwhile, the rating incorporates the fund’s low exposure to interest rate volatility. The unit holding pattern of the fund is concentrated with top 10 investors representing ~88% of the fund’s assets, (of which ~65% is the group’s investments) which exposes the fund to a low level of redemption pressure.

Going forward, the management intends to maintain the current investment strategy. 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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