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The Pakistan Credit Rating Agency Limited
Press Release

Date
18-Apr-24

Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com

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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 Income and Growth Fund

Rating Type Stability Rating
Current
(18-Apr-24 )
Previous
(18-Oct-23 )
Action Maintain Maintain
Long Term A(f) A(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Faysal Income and Growth Fund ("FIGF" or the "Fund") is a moderate risk profile fund. The investment objective of the Fund is to provide its investors with optimal yields through a diversified portfolio consisting of both long-term fixed instruments as well as short–term money market securities. The fund has allocated ~41.19% of Funds in Banks rated as AAA, ~56.40% in TFC/Sukuks rated as AA, while remaining was invested in others. The WAM of the Fund was 321 days at the end Dec'23, limiting the Fund to low level of credit risk. The duration of the Fund was 87 days at the end Dec'23, limiting the exposure to interest rate risk. The Fund’s top 10 investor concentration stood at ~90.24% of net assets at end-Dec'23. High investor concentration may expose the Fund to very high redemption pressure. Redemption pressure is addressed to maintenance of sufficient liquidity.
Going forward, material changes in the funds asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect 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.

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.