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The Pakistan Credit Rating Agency Limited
Press Release

Date
12-Jul-17

Analyst
Mohsin Naseer
mohsin.naseer@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of Faysal Savings Growth Fund

Rating Type Stability Rating
Current
(12-Jul-17 )
Previous
(27-Dec-16 )
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The investment objective of the fund is to earn competitive returns by investing mainly in a mix of short term to long term government securities and other debt instruments, having investment grade credit rating.

The rating reflects fund's strong credit quality and sound liquidity profile. At end-May- 17, the portfolio is primarily invested in short-term government securities (Tbills: 3.8%). The remaining assets (33.8%) are invested in daily cash balances and bank placements with majority of the portion in 'AA-' rated banks and good quality TFCs (25.6%) with 'AAA' and 'AA-' credit rating. A sizeable portion is deployed in margin trading system (34.8%) which, due to its self-liquidating nature, possesses less risk over a short tenure. The unit holding pattern of the fund is moderately concentrated with the top10 investors representing 54% of the fund's assets.

Going forward, As per the Investment Philosophy, the fund would maintain at least 25% allocation towards government securities, upto 25% exposure in margin trading system, exposure in TFCs / Sukuks would be upto 10% restricted to 'AA-' and above instruments; the remaining balance would constitute placements with high rated ('AA-' and above) banks, wherein, deposits with below 'A+' rated banks would not exceed 1%. Adherence to the stated Investment Philosophy of the fund remains crucial for the rating.

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

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.