PACRA Maintains Stability Rating of Faysal Islamic Special Income Fund

Faysal Islamic Special Income Fund (“FISIF” or the “Fund”) is categorized under a medium risk profile and, as of June 2025, comprises one plan, Faysal Islamic Special Income Plan I. The objective of FISIF is to to provide competitive regular return with capital preservation on Investments as per respective Allocation Plans by investing in authorized investable avenues in line with the risk tolerance of the Investor. As of June 2025, the Fund’s size stood at PKR 165 million, compared to PKR 11.03 billion in March 2025 and PKR 859 million in December 2024. The increase observed in March was primarily attributable to Faysal Islamic Special Income Plan III, whereas Plan I maintained a relatively modest size since inception. As of June 2025, assets were entirely concentrated in Plan I, with no outstanding balance in Plan III following the conclusion of its activity phase. The portfolio was primarily allocated to GoP Ijara Sukuk (~54.5%) and cash placements (~43.9%), with the remaining (~1.6%) in other assets. This composition reflects a sovereign-anchored structure complemented by strong liquidity positioning. From a credit quality perspective, exposures were concentrated in Government securities (~54.5%) and high-grade AA-rated instruments (~40.0%), while the residual was placed in A-rated and other avenues. The high-quality exposure profile underpins portfolio stability and limits credit risk. The Weighted Average Maturity (WAM) stood at 423 days, aligning with the Fund’s moderate risk orientation. The duration profile offers a balance between yield enhancement and controlled rate sensitivity, allowing the Fund to maintain resilience under varying interest rate conditions. Overall, the Fund’s structure demonstrates a prudent blend of return optimization and risk containment within a Shariah-compliant framework.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.

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, investment advisory services, REIT management services and Private Equity and Venture capital funds. The Board of Directors of the Company comprises seven members, including the Mr. Yousaf Hussain has over 26 years of professional experience, primarily at ABN AMRO Bank where he held multiple senior managerial positions including those within the Corporate / Credit and Transaction Banking functions. He has been with Faysal Bank since August 2008, with a significant contribution to the franchise. Mr. Nadir Rahman is the Director and CEO, and he has extensive, hands-on experience of capital markets in Pakistan and internationally, stretching over 32 years, of which 16 years have been in C level positions, including board level experience with listed, unlisted, and international companies. His core areas of expertise are business development, operations, investment management, M&A and corporate restructuring. He has advised on numerous capital market transactions, including the largest de-listing in Pakistan's history.