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The Pakistan Credit Rating Agency Limited
Press Release

Date
12-Jul-17

Analyst
Mohsin Naseer
mohsin.naseer@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of Faysal Financial Sector Opportunity Fund

Rating Type Stability Rating
Current
(12-Jul-17)
Previous
(27-Dec-16)
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The fund's investment objective is to generate a competitive rate of return to its investors by investing in money market and debt instruments with major exposure in financial sector.

The fund's investment objective is to generate a competitive rate of return to its investors by investing in money market and debt instruments with major exposure in financial sector. The rating reflects sound credit quality and liquidity profile of the fund owing to sizeable investments high rated avenues. At end-May17, the fund is primarily invested in daily cash (i.e. 55.6%) with high credit quality banks [majority with 'AA-' (76.57%)], while remaining assets are invested in TFCs rated AA-. Fund carries redemption risk as the unit holding pattern of the fund is concentrated, with the top 10 investors representing 72% of the net assets.

Going forward, the fund intends to allocates its assets toward high quality financial sector TFCs and cash balances (rated 'AA-' and above) and the remaining net assets of the fund are placed with government securities. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.

About the Entity
Faysal Asset Management Limited (FAML), licensed to conduct asset management and investment advisory services, was incorporated in 2003 as an unlisted public limited company under company's ordinance, 1984. The major shareholder of FAML is Islamic Investment Company of the Gulf (Bahamas) Ltd (50% stake), followed by Faysal Bank Limited (30% stake). Mr. Razi Ur Rahman Khan, a director of FAML, holds the remaining 20% stake in FAML. Presently, the company is managing a diversified portfolio of nine open-end funds, with combined AUMs of PKR 7.7 billion at end-May'17
The CEO, Mr. Razi-ur-Rahman Khan, has extensive experience in domestic and international capital markets. He is supported by the experienced management staff

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.