Muhammad Zain Ayaz
PACRA Maintains Stability Rating of Faysal Financial Sector Opportunity Fund
|Rating Type||Stability Rating|
The rating reflects sound credit quality and liquidity profile owing to sizeable investments in high rated avenues. At end Dec'20, the Fund was primarily invested in cash ~92% with banks rated ‘AA-‘ and above, while the remaining assets were invested in TFC's and PIBs. The offering document of the fund allows it to invest in banks rated 'AA-' and above. The Fund had a moderate level of top ten investors concentration at ~55%.
Going forward, the Fund intends to reduce its exposure with banks and invest the amount in government papers. 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 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 47bln at end Dec'20.