The Pakistan Credit Rating Agency Limited
Press Release


Ayesha Qasim

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PACRA Maintains Stability Rating of Faysal MTS Fund

Rating Type Stability Rating
(26-Dec-18 )
(20-Jun-18 )
Action Maintain Maintain
Long Term A+(f) A+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The objective of Faysal MTS Fund (FMTSF) is to provide competitive returns primarily through investment to MTS market.

The rating of Faysal MTS Fund reflects the comfort drawn on the elaborated and secure system of NCCPL. At end-Jun18, fund's ~47% net assets were invested in MTS transactions, which due to its self-liquidating nature possess less risk over the short tenure. The remaining assets of the fund were invested as cash ~42% with banks rated 'AAA' and 'AA-' and Government securities ~5%. The unit holding pattern of the fund is moderately concentrated towards top 10 investors representing ~51% of the fund's assets.

Going forward, the fund intends to keep a minimum of ~70% in MTS on a quarterly average basis. The rest of the amount would be invested in T-Bills and bank placements, of which the rating may not be lower than 'A+'. PACRA would monitor continued compliance with the relevant guidelines.

About the Entity
Faysal Asset Management Limited (FAML) was incorporated in 2003 as an unlisted public limited company under the company's ordinance, 1984. The major shareholders of the company are Islamic Investment Company of the Gulf, Bahamas Ltd having ~50% stake, followed by Faysal Bank Limited having ~30% stake. Mr. Razi Ur Rahman Khan - CEO - holds the remaining 20% stake in FAML. The company is managing a diversified portfolio of nine open-end funds with the combined AUMs of ~PKR 7.6 billion at end-Oct'18

The CEO, Mr. Razi-ur-Rahman Khan has extensive experience in banking, mutual funds management, the equity brokerage and private equity investment.

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.