PACRA Maintains Stability Rating of Faysal MTS Fund

The Faysal MTS Fund (or the "Fund"), the first of its kind in the industry, provides returns primarily through investment in MTS market having a low risk profile. The investment objective of the Fund is to provide competitive returns primarily through investment to MTS market. At end Dec'23, the Fund has allocated ~4% in Banks rated as AA, ~9% in T Bills, ~83 in MTS while remaining in others. The WAM of the Fund was 48 days at the end Dec'23; limiting the exposure to credit risk. The duration of the Fund was 4 day at the end Dec'23; limiting the exposure to interest rate risk. The unit holding pattern of the Fund was ~54.04% representing top ten investor concentration; exposing the Fund to high level of redemption pressure.
Going forward, material changes in the funds asset allocation strategy, which could impact the funds credit quality and exposure to interest rate risk, remain critical for the rating.

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 five members, including the Mr. Yousaf Hussain has over 26 years of professional experience, primarily at ABN AMRO Bank where he held multiple senior managerial positions including those within the Corporate / Credit and Transaction Banking functions. He has been with Faysal Bank since August 2008, with a significant contribution to the franchise. Mr. Nadir Rahman is CEO and he has extensive, hands on experience of capital markets in Pakistan and internationally, stretching over 32 years, of which 16 years have been in C level positions, including board level experience with listed, unlisted, and international companies. His core areas of expertise are business development, operations, investment management, M&A and corporate restructuring. He has advised on numerous capital market transactions, including the largest de-listing in Pakistan’s history. The Company is managing a diversified portfolio of funds, with AUMs of ~PKR 133.81bln at the end of Dec'23.