The Pakistan Credit Rating Agency (PACRA) has upgraded the stability rating to 'AA+(f)' (Double A Plus - Fund Rating) [Previous rating: "AA(f)" (Double A - Fund Rating)] of Alfalah GHP Cash Fund (AGCF), an open-end money market fund. The fund's rating denotes a very strong capacity to manage relative stability in returns and very low exposure to risks.
Launched in March 2010, the fund's objective is to provide regular income at a competitive rate of return. The rating reflects very strong credit quality of the fund's assets and a strong liquidity profile. In addition, the rating incorporates fund's very low exposure to interest rate volatility. The fund's very low credit risk and strong liquidity profile largely emanates from portfolio mix investing majorly (80%) in short term government securities.
The remaining funds are invested in a combination of money market instruments and deposits with scheduled banks rated 'AA' and above. Going forward, the fund will remain invested 75% in T-Bills with weighted average maturity of less than 60 days. The main factor affecting the rating of fund could be significant change in asset mix in favour of non-government securities, increasing the credit and liquidity risks.-PR
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