The Pakistan Credit Rating Agency Limited
18-Oct-21
Analyst
Muhammad Zain Ayaz
zain.ayaz@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of Faysal Income and Growth Fund
| Rating Type | Stability Rating | |
|
Current (18-Oct-21 ) |
Previous (16-Apr-21 ) |
|
| Action | Maintain | Maintain |
| Long Term | A(f) | A(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Faysal Income and Growth Fund (or the "Fund") reflects the fund's moderate risk profile. The Fund has allocated ~57% of total assets as cash placements in a single bank having rating of A+, ~18% of assets were placed in TFC/sukuks having rating ‘A’ and above, ~13% in PIBs and ~9% in commercial papers. The duration of the Fund remained 34 days, at Jun'21. The top 10 average investor concentration at end Jun'21 was ~92% of which ~31% are related parties, keeping the redemption pressure to a moderate level.
Going forward, the Fund intends to take some exposure in PIBs and increase its exposure in TFC's/Sukuks. Material changes in the funds 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 62bln at end Jun'21.