PACRA Maintains the Rating of Faysal Financial Sector Opportunity Fund
|Rating Type||Stability Rating|
Faysal Financial Sector Opportunity Fund ("FFSOF" or the "Fund") reflects the Fund's moderate risk profile. The investment objective of the Fund is to provide a competitive rate of returns to its investors by investing in money market and debt instruments with major exposure in financial sector instruments. At end Dec'22, the Fund was primarily invested in cash of ~91.6% with high credit quality banks, ~6.9% in TFC/Sukuk while the remaining assets are invested in Others. At the end Dec'22, the WAM stood at 11 days; limiting the exposure to credit risk. The duration stood at 7 days; limiting the exposure to interest rate risk. The Fund had a moderate level of top ten investors concentration at ~59.18%; keeping the redemption pressure at low level.
Going forward, material changes in the Fund's asset allocation strategy, which could impact the fund's credit quality and exposure to interest rate risk, remains 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.