PACRA Maintains the Rating of Faysal Savings Growth Fund
|Rating Type||Stability Rating|
Faysal Savings Growth Fund ("FSGF" or the "Fund") reflects the Fund's moderate risk profile. The investment objective of the Fund is to generate competitive returns by investing primarily in debt and fixed income instruments having investment grade credit rating. The rating reflects the moderate strength of the funds credit and interest rate risk profile. At end Dec'22, ~52.2% of fund's assets were invested with banks, while ~24.2% of funds were invested in TFCs and Sukuks,~19.4% in Ijara Sukuk, ~1.95% in PIBs. The WAM of the Fund was 485 days at the end Dec’22; exposing the Fund to credit risk and mark-market loss. The duration of the Fund was 47 days at the end Dec’22, exposing the Fund to low interest rate risk. The unit holding pattern of the fund is highly concentrated with top ten investors representing ~80.2% of the funds assets, which exposes the fund to high 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.
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.