February 11, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained Asset Manager rating of Alfalah GHP Investment Management Limited at ‘AM2+’, with a stable outlook forecast.
According to the rating agency, the rating incorporates the company's strong ownership and governance profile due to its association with a renowned financial institution – Bank Alfalah Limited.
The rating reflects the clear organizational structure, well-diversified fund slate, strong risk management framework, seasoned management team, structured investment process and quality support systems.
The rating reflects the company’s growing market share in its assets under management and its prominent position in the investment advisory domain.
At end Dec-18, the SMA portfolio stood at approximately 14bln and assets under management stood at approximately PKR 31bln (~PKR 26bln in Dec-17) with system share of approx. 5.4%.
The top ten investor concentration stood at approximately 65%, represents moderate redemption pressure. The company’s reported equity stood at approximately PKR 810mln as at end Sep-18.
The rating is dependent on the organization's capacity to effectively execute its business plan leveraging on group synergies to augment its system share, while reducing investor concentration.
In the meantime, establishing a strong and stable fund performance would be vital.
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