Muhammad Zain Ayaz
PACRA Maintains Stability Rating of Faysal Money Market Fund
|Rating Type||Stability Rating|
The rating reflects the funds strong credit and interest rate risk profile. The Fund's good credit quality and sound liquidity profile emanates primarily from its mandate to invest in government securities and other low duration avenues such as bank placement's and ensuring low exposure to interest rate risk. At end Dec'20, ~80% of fund's assets were allocated to banks rated 'AA' and above, remaining funds were invested in commercial papers rated 'AA'. Funds unit holding pattern is highly concentrated with top 10 investors representing ~79% of the net assets, which exposes the Fund to high level of redemption pressure.
Going forward, the Fund intends to take some exposure in T-Bills based on their investment strategy and market expectations. Material changes in the funds asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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.