PACRA Maintains Stability Rating of Faysal Financial Sector Opportunity Fund

Faysal Financial Sector Opportunity Fund ("FFSOF" or the "Fund") is a moderate risk profile Fund. The investment objective of the Fund is to provide a competitive rate of returns to its investors by investing in money market and debt instruments with major exposure in financial sector instruments. The Fund's asset quality is adequate and is in line with the rating criteria at end Jun'24. As of the end of Jun'24, Fund's investment was ~52.29% in A+ rated category, ~27.55% in AAA rated avenues, ~10.79% in AA- rated avenues, ~1.67% in AA+ rated avenues with the remaining was invested in other categories. At the end of Jun’24, most investment was held in Banks in the form of cash & placements (~61.57%) followed by PIB’s (~26.38%), TFC/Sukuks (~8.75%) and remaining was invested in others. The WAM of the Fund stood at 22 days at the end of Jun’24, limiting the exposure of credit risk. The duration of the Fund stood at 37 days, limiting the exposure of interest rate risk. The top ten investor concentration stood at ~55.41% as of Jun’24; exposing the Fund to high redemption pressure.
Going forward, any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.

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 168.38bln at the end of Jun'24.