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The Pakistan Credit Rating Agency Limited
Press Release

Date
17-Apr-20

Analyst
Madiha Sohail
madiha.sohail@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
(17-Apr-20)
Previous
(17-Oct-19)
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects sound credit quality and liquidity profile of the fund owing to size-able investments in high rated avenues. At end Dec'19, the fund is primarily invested in cash (~86%) with high credit quality banks, while the remaining assets are invested in TFC's and commercial papers. As the Fund size has increased considerably in the last quarter, the fund intends to keep the investments in high rated liquid instruments.
Going forward, the fund intends to maintain its assets majorly towards high quality cash placements. 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 was incorporated in 2003 as an unlisted public limited company. The Company is licensed by the Securities and Exchange Commission of Pakistan to carry out asset management and investment advisory services under the Non-Banking Finance Companies Regulations. The Company is a wholly owned subsidiary of Faysal Bank Limited.

The Board of Directors of the Company comprises six members, including the Chairman Mr. Salman Ahmed Usmani. He has a rich experience of over three decades in the local as well as multinational banking sector. Mr. Khaldoon bin Latif was appointed as the CEO of the Company in Dec’18. Mr. Latif has been associated with the capital markets for over fifteen years. Mr. Latif is a LUMS Alumni and has done a number of capital market courses with CFA association, Daiwa, J.P. Morgan and Bahrain Institute of Banking and Finance (BIBF). The Company is managing a diversified portfolio of funds, with AUM’s of ~PKR 15.7bln at end Dec'19.

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.