The Pakistan Credit Rating Agency Limited
12-Jul-17
Analyst
Mohsin Naseer
mohsin.naseer@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of Faysal Money Market Fund
| Rating Type | Stability Rating | |
|
Current (12-Jul-17 ) |
Previous (27-Dec-16 ) |
|
| Action | Maintain | Downgrade |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The objective of the fund is to generate consistent and competitive returns with minimal risk by investing in liquid, low risk short term investments, yielding competitive returns. At end May-17, fund's assets were invested as Government Securities (82%), Cash (1%) with banks rated 'AA+ and Commercial Papers (7%) Interest rate risk is moderate for the fund as duration of the fund is 21 days. On monthly average basis, the duration of the remained within the assigned parameters. The unit holding pattern of the fund is highly concentrated with top10 investors representing 75% of the fund's assets, which exposes fund towards redemption pressure.
The rating remains dependent on maintaining portfolio duration not exceeding 90 days. Meanwhile, the assets of the fund must be placed with minimum credit ratings 'AA' and above. PACRA would monitor compliance against agreed parameters on monthly average basis.
About
the Entity
Faysal Asset Management Limited (FAML), licensed to conduct asset management and investment advisory services, was incorporated in 2003 as an unlisted public limited company under company's ordinance, 1984. The major shareholder of FAML is Islamic Investment Company of the Gulf (Bahamas) Ltd (50% stake), followed by Faysal Bank Limited (30% stake). Mr. Razi Ur Rahman Khan, a director of FAML, holds the remaining 20% stake in FAML. Presently, the company is managing a diversified portfolio of nine open-end funds, with combined AUMs of PKR 7.7 billion at end-May'17
The CEO, Mr. Razi-ur-Rahman Khan, has extensive experience in domestic and international capital markets. He is supported by the experienced management staff