The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Stability Rating of Faysal Income and Growth Fund

Rating Type Stability Rating
(18-Apr-22 )
(18-Oct-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 ~92% of total assets as cash placements in a single bank having a rating of A+, however, investment in a single bank is giving rise to concentration risk. The rest ~4% of assets were placed in TFC/Sukuk having rating ‘A’ and above, ~2% in CPs having a rating A. The overall, credit quality of the Fund remained strong during CY21, which is giving comfort to the assigned rating. At end Dec'21, the duration of the Fund remained 5 days minimizing the interest rate risk. While WAM remained at 51days, minimizing the credit risk profile of the Fund. The top 10 average investor concentration at the end Dec'21 was ~97% giving rise to high redemption pressure, however, 92% of investments placed at bank giving comfort to the risk.
Going forward, the Fund intends to take some exposure in PIBs and increase its exposure in TFC's/Sukuks. Material changes in the Fund's 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 76bln at end Dec'21.

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