The Fund follows an asset allocation strategy that seeks to actively manage the asset class allocations within the Fund with a view to achieving attractive, sustainable and consistent returns for investors over a period of time. The IPO can be subscribed from select branches of Bank Alfalah Limited, the main sponsor of the Management Company.
The Alfalah GHP Value Fund will invest in equities, debt, corporate paper, CFS etc. The Fund has a restriction of investing a maximum of 80 percent of NAV in any one asset class with maximum 25 percent of NAV in CFS. Also, as per SECP approved limits, at least 5 percent of NAV will be kept in cash to meet any potential redemption's.
The Management Company of the Fund brings with it an experienced team of dedicated professionals from the industry who have the relevant experience and commitment to deliver long term stable and sustainable returns for would-be investors.
The team is aptly supported by high end systems and technology that has been streamlined and modified to provide quick time management information so as to better manage funds and investment exposures. On top of this, the sponsors of the Management Company, Bank Alfalah Limited and GHP Financial Services of Switzerland, provide guidance and support to the management in the execution of strategic plans and the attainment of overall client and company objectives.
Going forward, the Management Company has plans to come out with other specialist funds such as Islamic Fund and Private Equity Fund that would aim to meet niche investor needs that have been undeserved for the time being. The company realises that product innovation and distribution coverage will be the keys to future growth.
The asset management industry presents an exciting growth story that will continue to draw headlines in the near future. With only 5 percent of banking sector deposits under funds management (as compared to 10 percent in India) and a unit holder base of roughly 90,000.
There exists a vast opportunity for fund management companies to grow their business and attract new investors into investing in mutual funds. Globally, mutual funds are the investment vehicle of choice for retail investors to access the capital markets as they rely on professional fund managers and experts to invest their funds on their behalf. However, in Pakistan, there is general lack of awareness of mutual funds and the benefits that investors can get from them. Nonetheless, with time, awareness should grow, as investors understand mutual funds and start investing in them for their long-term objectives and targets.