PACRA Maintains Stability Rating of Faysal Money Market Fund
|Rating Type||Stability Rating|
The rating reflects the fund's sound credit risk profile emanating from the fund's investment policy to invest in high credit quality investment avenues with sound liquidity. At end Dec'19, ~83% of the fund's assets were invested in cash placements, while ~8% were invested in commercial papers.
Going forward, the fund intends to maintain its allocation towards high rated banks, while also taking exposure in the T-Bills market. This action might lead to an increase in the Duration of the fund, but the Fund Manager intends to maximize the interest rate exposure based on the outlook of a downward trend in the Interest rates. 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.
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.