Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Faysal Savings Growth Fund
Rating Type | Stability Rating | |
Current (18-Apr-22 ) |
Previous (18-Oct-21 ) |
|
Action | Maintain | Maintain |
Long Term | AA-(f) | AA-(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Faysal Savings Growth Fund (or the "Fund") reflects the Fund's moderate risk profile. At end Dec'21, the Fund had allocated ~55% as cash placements in banks having rating A+ and above, ~19% of assets were invested in corporate TFCs/sukuks having rating A+ and above,~ 12% were invested in CPs having rating AA, while remaining ~7% were invested in spread transactions. The overall, credit quality of the Fund remained strong during CY21 and remained compliant with assigned rating criteria. At end Dec'21. the duration and WAM of the Fund remained at 30 days, limiting the exposure to interest rate risk and credit risk. The unit holding pattern of the Fund is highly concentrated with top ten investors representing ~81%, out of which related party holding was ~40% keeping the redemption pressure to a low level.
Going forward, the Fund intends to follow the same investment strategy. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
About
the Entity
Faysal Funds (Faysal Asset Management Limited) is a subsidiary of Faysal Bank Limited (FBL). FBL is holding 99.99% shares of Faysal Funds. Faysal Funds was incorporated in Pakistan under the Companies Ordinance, 1984 on August 6, 2003 as an unlisted public limited company and is licensed by the Securities and Exchange Commission of Pakistan to carry out asset management and investment advisory services.
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 (CEO) 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 76bln at end Dec'21.