PPI Original Text (PPI-OT) – Pakistan Credit Rating Agency Limited Maintains Asset Manager Rating of Alfalah GHP investment management Limited

Lahore, May 17, 2012 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the asset manager rating of Alfalah GHP Investment Management Limited (AGIM) at “AM3″ (AM Three).

The rating reflects company’s association with a leading commercial bank – Bank Alfalah Limited (BAL), experienced management team, and adequately structured investment process. The funds’ overall performance remained average, with some of them underperforming industry’s average lately.

Although the size and diversity in assets under management registered decline, a comprehensive business strategy is underway, being guided by the parent bank. The AMC’s management is committed to tap the rising growth potential through already established network of Bank Alfalah.

The outlook on the rating is ‘Negative’, highlighting criticality of strategic oversight and business support that the company needs to survive in the increasingly competitive environment. For this, the key sponsor (Bank Alfalah) is in the process of acquiring another financial institution with asset management business.

The planned acquisition, while showing commitment of Bank Alfalah towards AMC business, is expected to bring much needed strategic focus to AGIM’s operations. This should also impact AMC’s rating positively. Nevertheless, a timely merger and eventual roll out of a comprehensive business plan would be crucial.

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

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