PACRA Maintains Stability Rating of Faysal Savings Growth Fund
|Rating Type||Stability Rating|
The objective of the fund is to generate competitive returns by investing primarily in debt and fixed income instruments having an investment grade credit rating.
The rating reflects the fund's strong credit quality and sound liquidity profile. At end-Jun-18, the portfolio is primarily invested in TFCs ~31% with a minimum A+ rating. The remaining assets are invested in daily cash balances and bank placements with ~5% of the portion in 'AAA' and ~21% in 'AA+' rated banks. The unit holding pattern of the fund is highly concentrated with top10 investors representing ~ 68% of the fund's assets, (of which ~31% are owned investments) which exposes the fund to a low level of redemption pressure.
Going forward, the fund intends to maintain exposure in government securities, margin trading system (MTS), corporate debt securities and cash balances. The rating is contingent upon the fund's interest rate sensitivity and volatility in prices of TFCs in case of exposure to low rated instruments. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.
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.