PACRA Maintains the Stability Rating of Faysal Financial Sector Opportunity Fund.
|Rating Type||Stability Rating|
The rating reflects sound credit quality and liquidity profile of the fund owing to sizeable investments in high rated avenues. At end‐Jun'19, the fund is
primarily invested 80% in cash with high credit quality banks, while remaining assets are invested in TFCs and commercial papers.
Going forward, the fund intends to maintain its assets towards high quality TFCs and cash balances. Material changes in the fund's asset allocation strategy,
which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.
Faysal Asset Management Limited was incorporated in 2003 as an unlisted public limited company under the company's ordinance, 1984. The major shareholding lies with Faysal Bank Limited having almost the entire stake in the company. During Nov-18, Faysal Bank Limited acquired ~50% stake from Bahamas Ltd and 20% from Mr. Razi Ur Rahman Khan – the former CEO of the company. The company is managing a diversified portfolio of twelve open-end funds having AUMs of ~PKR 8.5 billion at end-Jun'19.
The former CEO, Mr. Razi-ur-Rahman Khan left the company amid Nov-18. During Dec-18, Mr. Latif has been appointed as the new CEO of Faysal Asset Management Limited. Mr. Latif has been associated with the capital markets for 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). He has also completed his Director certification program from IBA.