The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Zain Ayaz

Applicable Criteria

Related Research

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 Halal Amdani Fund

Rating Type Stability Rating
(20-Oct-21 )
(21-Apr-21 )
Action Maintain Maintain
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Faysal Halal Amdani Fund (or the "Fund") reflects the Fund's low risk profile, had allocated ~76% as cash placements in banks having rating ‘AA’ and above, ~13% of assets are placed in CPs having rating ‘AA’ and above. The Investment Policy allows the Fund to place its assets in banks rated 'AA' and above. The duration of the Fund remained 18 days at Jun'21. The top 10 investors concentration of the Fund is ~70%, giving rise to high redemption pressure.
Going forward, Faysal Halal Amdani Fund intends to hold majority of exposure in liquid avenues. Further, the Fund management will also explore multiple investment avenues including Islamic Commercial Papers, Short Term Sukuks and Placements with Banks/ DFIs. Meanwhile, the assets of the Fund must be placed with the minimum credit ratings of 'AA' and above.

About the Entity
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 of over three decades in the local as well as multinational banking sector. Mr. Khaldoon bin Latif (CEO) has been associated with the capital markets for over 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). The Company is managing a diversified portfolio of funds, with AUM’s of ~PKR 62bln at end Jun'21.

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.