Muhammad Zain Ayaz
PACRA Maintains Stability Rating of Faysal Savings Growth Fund
|Rating Type||Stability Rating|
The rating reflects the adequate strength of the Funds credit and interest rate risk profile. Investment in short tenor instruments and considerable placements in banks enhances the liquidity profile of the Fund. At end Dec'20, ~60% of Fund's assets were invested with banks, while ~26% invested in TFCs/Sukuks and Commercial Papers. The offering document of the fund allows it to invest in banks rated 'BBB' and above. The unit holding pattern of the Fund is highly concentrated with top ten investors representing ~84% of the funds assets, of which ~20% are related parties. This exposes the Fund to moderate level of redemption pressure.
Going forward, the Fund intends to reduce its asset allocation in banks to invest in government securities. Material changes in the Fund's 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.