Final PR
The Pakistan Credit Rating Agency Limited

Rai Umar Zafar

Mohsin Naseer

Applicable Criteria

  • Methodology | Fund Stability Rating (Jun 17) [View]

Related Research

  • Sector Study | Mutual Funds (Oct 16) [View]
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PACRA Maintains Stability Rating of Faysal Income and Growth Fund
 Rating Type Stability Rating
 Action. Maintain Maintain
 Long Term A(f) A(f)
 Short Term - -
 Outlook Stable Stable
 Rating Watch - -

The fund's investment objective is to generate optimal returns by investing in a diversified mix of short term and long term government securities and other debt instruments.

The rating reflects sound credit quality and liquidity profile of the fund owing to sizeable investments in government securities. At end-May'17, the fund is invested in daily cash balances with good quality banks (62%), rated 'A' & above with highest exposure to ‘A+’(52.23%) and ‘AA-’ rated banks. The remainder of the fund's assets are invested with good quality ('A' and above) TFCs/Sukuks (37%). The fund currently has low exposure to MTS. The unit holding pattern of the fund is moderately concentrated with top10 investors representing 44% of the fund's assets.

Going forward, the fund intends to maintain relatively high exposure towards government securities. Exposure in margin trading system would be kept upto 20% maximum. Meanwhile, cash holdings would be managed with 'AA' rated banks.
About the Entity
Faysal Asset Management Limited (FAML), licensed to conduct asset management and investment advisory services, was incorporated in 2003 as an unlisted public limited company under company's ordinance, 1984. The major shareholder of FAML is Islamic Investment Company of the Gulf (Bahamas) Ltd (50% stake), followed by Faysal Bank Limited (30% stake). Mr. Razi Ur Rahman Khan, a director of FAML, holds the remaining 20% stake in FAML. Presently, the company is managing a diversified portfolio of nine open-end funds, with combined AUMs of PKR 7.7 billion at end-May'17

The CEO, Mr. Razi-ur-Rahman Khan, has extensive experience in domestic and international capital markets. He is supported by the experienced management staff
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.