PACRA Maintains the Rating of Faysal MTS Fund (FMTSF)
|Rating Type||Stability Rating|
The Faysal MTS Fund (or the "Fund"), the first of its kind in the industry, provides returns primarily through investment in MTS market having a moderate risk profile. The investment objective of the Fund is to provide competitive returns primarily through investment to MTS market. The Faysal MTS Fund, primarily maintained an exposure of ~83.55% in the MTS market at end Dec'22. The Fund has allocated ~8.18% in Banks, ~6.34 in T Bills while remaining was invested in Others. The WAM of the Fund was 51 days at the end Dec’22; limiting the exposure to credit risk. The duration of the Fund was 0 day at the end Dec’22; limiting the exposure to interest rate risk. The investor concentration stood at 47.09% at the end Dec'22. High investor concentration may expose the Fund low redemption pressure.
Going forward, Material changes in the funds asset allocation strategy, which could impact the funds credit quality and exposure to interest rate risk, remain critical for the rating.
Faysal Funds (Faysal Asset Management Limited) is a subsidiary of Faysal Bank Limited (FBL). FBL is holding 99.99% shares of Faysal Funds. Faysal Funds was incorporated in Pakistan under the Companies Ordinance, 1984 on August 6, 2003 as an unlisted public limited company and is licensed by the Securities and Exchange Commission of Pakistan to carry out asset management and investment advisory services.
The Board of Directors of the Company comprises six members, including the Chairman Mr. Salman Ahmed Usmani. He has a rich experience over three decades in the local as well as the multinational banking sector. Mr. Khuldoon bin latif has recently resigned from Faysal Asset Management Limited and in his replacement, Mr. Ayub Khuhro is now working as acting CEO of the AMC. The Company is managing a diversified portfolio of funds, with AUMs of ~PKR 104bln at the end of Dec'22.