The Pakistan Credit Rating Agency Limited
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Muhammad Usman

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PACRA Maintains Stability Rating of Faysal Money Market Fund

Rating Type Stability Rating
Action Maintain Maintain
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Faysal Money Market Fund (FMMF) seeks to provide stable and competitive returns in line with the money markets exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low-risk short-term investments yielding competitive returns.

The rating reflects the fund's sound credit risk profile emanating from the fund's investment policy to invest in high credit quality investment avenues with sound liquidity. At end Jun-18, fund's assets were ~95% invested with banks rated 'AAA’. The unit holding pattern of the fund is concentrated with top 10 investors representing ~70% of the total fund size of which ~9% are owned investments, which reflects a moderate level of redemption risk.

Going forward, the fund intends to maintain its allocation towards government securities and bank placements rated ‘AAA’ and ‘AA+’. Meanwhile, the assets of the fund must be placed with the minimum credit ratings of 'AA' and above. 

About the Entity
Faysal Asset Management Limited (FAML) was incorporated in 2003 as an unlisted public limited company under the company's ordinance, 1984. The major shareholders of the company are Islamic Investment Company of the Gulf, Bahamas Ltd having ~50% stake, followed by Faysal Bank Limited having ~30% stake. Mr. Razi Ur Rahman Khan - CEO - holds the remaining 20% stake in FAML. The company is managing a diversified portfolio of nine open-end funds with the combined AUMs of ~PKR 7.6 billion at end-Oct'18

The CEO, Mr. Razi-ur-Rahman Khan has extensive experience in banking, mutual funds management, the equity brokerage and private equity investment.

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.