The Pakistan Credit Rating Agency Limited
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Muhammad Zain Ayaz

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PACRA Maintains Stability Rating of Faysal Halal Amdani Fund

Rating Type Stability Rating
(21-Apr-21 )
(28-Jan-21 )
Action Maintain Initial
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The rating reflects Faysal Halal Amdani Fund's (Or the "Fund") sound credit risk profile emanating from the Fund's investment policy to invest in strong credit quality investment avenues with sound liquidity. The Fund launched in Oct'19 and during the first year of operation the net assets of the Fund significantly grew by ~4 times and stood at PKR 10.7bln at end Dec'20. The rating also takes into account the Fund's objective to offer competitive returns to its investors through deployment of its funds in cash and near cash instruments and bank placements. In line with its offering document, the Funds exposure to various sources of risk has been maintained at lower side. Further, the investment policy of the Fund strictly prohibits investment in below AA rated avenues. The rating also incorporates the 12-month average returns of Fund which has out-performed the benchmark as well as the industry average. The unit holding pattern of the Fund is concentrated with top 10 investors representing 74% of the total fund size.
Going forward, Faysal Halal Amdani Fund intends to hold majority of exposure in liquid form. Further, the Fund management will also explore multiple investment avenues including Islamic Commercial Papers, Short Term Sukuks and Placements with Banks/ DFIs. Meanwhile, the assets of the Fund must be placed with the minimum credit ratings of 'AA' and above.

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 six members, including the Chairman Mr. Salman Ahmed Usmani. He has a rich experience of over three decades in the local as well as multinational banking sector. Mr. Khaldoon bin Latif (CEO) has been associated with the capital markets for over fifteen years. Mr. Latif is a LUMS Alumni and has done a number of capital market courses with CFA association, Daiwa, J.P. Morgan and Bahrain Institute of Banking and Finance (BIBF). The Company is managing a diversified portfolio of funds, with AUM’s of ~PKR 47bln at end Dec'20.

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.