PACRA Upgrades Stability Rating of Faysal MTS Fund
|Rating Type||Stability Rating|
The Faysal MTS Fund, first of its kind in the industry, maintained an exposure of ~65% in the MTS market at end Dec'19. The Cash balances of the Fund were majorly placed in AA- Banks. The rating incorporates the volatile nature of the Equity market in Pakistan, which impacts the NAV stability of the fund as the major part of the investments are in MTS.
Going forward, the Fund intends to take the maximum exposure in the MTS, as much as possible in the relatively limited MTS market in Pakistan. 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.