Lahore, March 29, 2023 (PPI-OT): The rating reflects strong risk profile of the Alfalah GHP Cash Fund’s (or the “Fund”). The Fund’s good credit quality and sound liquidity profile emanate primarily from its mandate to invest in Government Securities and in bank deposits. At end Dec’22, ~50.8% of Funds assets were allocated to T Bills, ~38.4% in Banks, ~3.6% in CPs whereas the remaining was invested in Others. As per the investment policy, the weighted average maturity of the Fund did not exceed 90 days during the period ending on 31st Dec’22.
While at end Dec’22, the WAM and Duration of Fund stood at 19 days, limiting the exposure to credit risk and interest rate risk. The unit holding pattern of the Fund was ~77.68% representing top ten investor concentration; exposing the Fund to a moderate level of redemption pressure. Going forward, the Fund intends to maintain the current allocation strategy. 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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