PACRA Maintains Stability Rating of Alfalah GHP Money Market Fund

Lahore, April 17, 2019 (PPI-OT): The objective of the fund is to generate competitive returns consistent with low risk from a portfolio constituted of short-term instruments including cash deposits, money market placements and government securities. The Fund will maintain a high degree of liquidity, with time to maturity of a single asset not exceeding six months and with the weighted average time to maturity of Net Assets not exceeding 90 days.

The rating reflects the fund’s strong credit quality and sound liquidity profile. At the end of Dec-18, the fund has ~85% exposure with banks as cash rated ‘AA+’ and above. On a monthly average basis, fund’s duration in the last 6 months remained below 45 days. Going forward, management intends to have a duration not exceeding 45 days. The unit holding pattern of the fund represents a moderate level of redemption risk as top 10 investors concentration was ~56%.

Going forward, the rating remains dependent on maintaining the portfolio allocations towards government securities and banks with strong credit quality. 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