The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Rating of Faysal Halal Amdani Fund

Rating Type Stability Rating
(18-Oct-23 )
(17-Apr-23 )
Action Maintain Maintain
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Faysal Halal Amdani Fund ("FHAF" or the "Fund") reflects the Fund's low-risk profile. The investment objective of the Fund is to provide competitive rate of return with maximum possible preservation of capital by investing in liquid and low risk Shariah Compliant bank deposits, money market & debt securities. At the end Jun'23, the fund had allocated ~88.68% in Bank deposits and placements majorly in AA rated and above, ~9.75% in Short term Corporate sukuks in majorly in AA. The Duration of fund stood at 11 days limiting the fund exposure to Interest rate risk. The WAM of fund stood at 15 days limiting the fund exposure to Credit risk. Faysal Halal Amdani Fund (FHAF) yielded an annualized return of 17% versus its benchmark return of 6.23% on an FY23 basis. The unit holding pattern of the Fund was ~25.7% representing top ten investor concentration with limited exposure to redemption pressure.
Going forward, material changes in the Fund's 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 98.2bln at the end of Jun'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.