The Pakistan Credit Rating Agency Limited
17-Apr-20
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Faysal Savings Growth Fund
| Rating Type | Stability Rating | |
|
Current (17-Apr-20 ) |
Previous (17-Oct-19 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects fund's strong credit quality and sound liquidity profile. At end Dec'19, the portfolio is majorly invested in Cash and TFC's/Sukuks (~48% and 42% respectively). The average top 10 investor concentration at end Dec'19 was ~81%.
Going forward, the fund intends to maintain exposure towards government-guaranteed investments and cash balances. The rating is contingent upon the fund's interest rate sensitivity and volatility in prices of TFC's in case of exposure to low rated instruments. 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 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.