PACRA Maintains Stability Rating of Faysal Islamic Special Income Fund

Faysal Islamic Special Income Fund (or the "Fund") is a low risk profile Fund. The Fund consists of two plans Faysal Islamic Special Income Plan-I and Faysal Islamic Special Income Plan-III. The primary objective of Faysal Islamic Special Income Fund is to provide competitive risk-adjusted returns to its investors by investing in a diversified portfolio of long, medium, and short-term Shariah Compliant instruments while taking into account liquidity considerations. The credit quality of the Faysal Islamic Special Income Fund Plan I is 94.14% in AA rated avenues, with the remaining portion allocated to other receivables. The Fund had allocated ~86.53% in banks in the form of cash and placements, and 5.86% in others, and 7.61% in DFI/NBFCs as at end Jun’24. The net asset value of fund is 129mln and WAM of the Fund stood at 1-day, limiting the exposure to credit risk. The duration of the Fund stood at 9 days limiting the exposure to interest rate risk. The unit holding pattern of the fund with top ten investors representing 61.07% of the Funds’ assets, which exposes the Fund to high redemption pressure. In comparison, the Faysal Islamic Special Income Fund Plan III has about 97.29% invested in AA rated avenues, while the remaining portion is in other receivables. The Fund had allocated ~97.29% in banks in the form of cash and placements, and 2.71% in others as end Jun’24. The net asset value of fund is 1250mln and WAM of the Fund stood at 1-day, limiting the exposure to credit risk. The average credit quality of the Fund was ~95.71% in AA rated avenues and remaining was in other receivables. The Fund had allocated ~95.72% in banks in the form of cash and placements, and 4.29% in others. The total Net Asset of the fund is 1379mln at end of Jun’24.
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 185bln at the end of Jun'24.