Lahore, April 14, 2023 (PPI-OT): Alfalah GHP Islamic Income Fund (“AIIF” or the “Fund”) is a medium risk profile fund. The investment objective of Alfalah GHP Islamic Income Fund is to minimize risk, construct a liquid portfolio of shariah approved fixed-income investments, and provide competitive returns to the Unit Holders.
The rating reflects the Fund’s moderate credit risk profile emanating from its asset allocation, of which ~36.8% invested in cash placements in banks, ~26.9% were invested in Government Securities, ~25.1% invested in TFC/Sukuk, ~4.3% in CPs whereas remaining invested in Others.
The duration of the Fund stood at 49 days in the end Dec’22 (38 days at end Sep’22) exposing the Fund to low-interest rate risk. While the WAM of the Fund remained 715 days, at Dec’22, exposing the Fund to high credit risk. The top 10 investors’ concentration of the Fund, at Dec’22 was ~31.21%, giving rise to a low level of redemption pressure.
Going forward, the Fund intends to maintain its current asset allocation. 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