Pakistan Credit Rating Agency Limited assigns Capital Protection Rating to Alfalah GHP Capital Preservation Fund

Lahore, February 18, 2016 (PPI-OT): The Pakistan Credit Rating Agency has assigned capital protection rating of “CP2″(CP Two) to Alfalah GHP Capital Preservation Fund managed by Alfalah GHP Investment Management Limited. The rating denotes very strong certainty of capital protection.

The rating recognizes the fund’s conservative investment philosophy pursued by the management company. At End-Dec15, the fund was approx. 37% invested in equity based mutual funds. These are two funds with 3-star (18.6%) and 2-Star (18.2%) fund performance ranking. The fixed income portion is restricted to money market, sovereign income schemes and cash placements. While money market and sovereign income funds reflect lower risk, cash placements may not be made lower than “AA-” (Double A Minus).

At end-Dec 15, the fund had invested (54%) in money market funds having “AA (f)” fund stability rating and in sovereign income funds of approx. (9%) having “AA-(f)” (Double A Minus, fund rating). At end-Dec, the fund’s multiple was in the range of 3.0 to 3.3. At the same time, the asset manager rating of the management company lends support.

Alfalah GHP Capital Preservation Fund was launched Sep 18, 2014, based on Constant Proportion Portfolio Insurance model. With a fund size of PKR 1,773mln, the fund’s NAV stood at 106.7 at end-Dec 15. The fund has made a return of 11.17% since inception. The maturity is in October, 2016. The rating remains dependent on continued compliance with the predefined parameters. PACRA would monitor the compliance on a monthly basis.

For more information, contact:
Hammad Rashid
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