Lahore, November 11, 2021 (PPI-OT):Alfalah Islamic Rozana Amdani Fund (or the “Fund”) is an open ended shariah compliant market fund, managed by Alfalah GHP Investment Management Limited. The rating reflects the Fund’s low credit risk profile emanating from the Fund’s investment policy to invest in strong credit quality investment avenues with sound liquidity. On Jun’21, the Fund had allocated ~52% of Fund’s assets to bank placements rated ‘AA’ and above’, ~13% in commercial papers, and ~20% as bai-muajjal agreement with bank rated ‘AA’ and above.

The investment policy of the Fund restricts investment in below ‘AA’ rated avenues. The duration of the Fund is 31 days, at Jun’21, which bodes well with the rating. The rating also takes comfort from the fact that quarterly weighted average duration of the Fund must be capped at 60 days which will support the Fund to maintain low level of price risk and strong liquidity profile.

Fund’s unit holding pattern is highly concentrated with top 10 investors representing ~87% of the net assets, of which ~7% are related parties. This exhibits high redemption pressure. Going forward, the rating of the Fund will remain dependent upon maintaining its liquidity, credit quality and duration benchmark in line with its investment policy and PACRA rating criteria.

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