Analyst
Usama Ali
usama.ali@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains the Capital Preservation Rating of Faysal Special Saving Fund
Rating Type | Capital Preservation Rating | |
Current (28-Feb-25 ) |
Previous (29-Feb-24 ) |
|
Action | Same | Initial |
Long Term | CP2+ | CP2+ |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
The Pakistan Credit Rating Agency (PACRA) has maintained the Capital Preservation Rating of Faysal Special Savings Fund (FSSF), underscoring its moderate risk profile emblematic of a strategically curated equilibrium between capital safeguarding and competitive yield generation. This open-end Capital Protected Fund is meticulously structured to deliver consistent, risk-adjusted returns through astute allocations across authorized instruments, harmonized with investor risk appetites. Units are perpetually offered, with term-based plans introduced selectively, ensuring flexibility. As of December 2024, the Fund’s AUM stood at ~PKR 1.65 million, strategically deployed across a diversified mosaic of assets: ~73.5% in high-quality receivables, ~18.0% in AA-rated instruments, and ~8.5% in AA- rated avenues. Bank placements constituted ~26.5%, complemented by ancillary allocations. The Fund’s architecture comprises two perpetual plans: Faysal Special Saving Plan-I (FSSP-I): Dominated by 83.68% receivables and 16.32% cash, this plan exemplifies conservative liquidity stewardship. Credit exposure is anchored by 14.75% AA- rated assets, 1.52% AA-rated securities, and a nominal 0.05% AAA-rated allocation, with non-rated receivables forming the core. A zero-leverage stance, coupled with short-term WAM/duration, negates interest rate volatility. Faysal Special Saving Plan-II (FSSP-II): A relatively liquid portfolio with 63.25% receivables and 36.75% cash. Credit quality leans on 34.45% AA-rated and 2.31% AA- rated instruments, though non-rated exposures prevail. Alfalah AMC has assumed stewardship of the Fund effective January 1st, 2025 a transition poised to bolster governance. PACRA underscores that material deviations from the Fund’s current asset strategy particularly shifts impacting credit quality or interest rate exposure could recalibrate the rating trajectory.
Going forward, material changes in the Fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.
About
the Entity
Faysal Asset Management Limited 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. Faysal Funds is a subsidiary of Faysal Bank Limited (FBL). FBL holds 99.99% shares of Faysal Funds. The Company is managing a diversified portfolio of funds, with AUMs of ~PKR 245.854bln at the end of Dec'24.