The Pakistan Credit Rating Agency Limited
17-Apr-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains the Rating of Faysal Money Market Fund
| Rating Type | Stability Rating | |
|
Current (17-Apr-23 ) |
Previous (14-Oct-22 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Faysal Money Market Fund ("FMMF" or the "Fund") reflects the Fund's low-risk profile. The investment objective of the Fund is to generate competitive returns with minimum risk and enhanced liquidity by investing primarily in short-term government. The rating reflects the Fund's strong credit and interest rate risk profile. At end Dec'22, ~95.2% of Fund's assets were allocated to T Bills, ~ 4.3 in Banks while remaining Funds were invested in Others. The overall credit quality of the asset composition is in compliance with the rating criteria for the assigned rating, during CY22. At end Dec'22, the WAM remained at 44 days; limiting the exposure to credit risk. The duration of the Fund stood at 37 days; limiting the exposure to interest rate risk. While the unit holding pattern is highly concentrated with top 10 investors representing ~72.09% of the net assets, which exposes the Fund to medium level of redemption pressure.
Going forward, 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 over three decades in the local as well as the multinational banking sector. Mr. Khuldoon bin latif has recently resigned from Faysal Asset Management Limited and in his replacement, Mr. Ayub Khuhro is now working as acting CEO of the AMC. The Company is managing a diversified portfolio of funds, with AUMs of ~PKR 104bln at the end of Dec'22.