JCR-VIS Reaffirms MQ Rating of Faysal Asset Management Limited

Karachi, June 11, 2015 (PPI-OT): JCR-VIS Credit Rating Company Ltd. has reaffirmed the Management Quality Rating of Faysal Asset Management Limited (FAML) at ‘AM3+’ (AM-Three Plus). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 27, 2013.
FAML manages a total product suite comprising seven open end funds, two SMAs and five mandates under the format of Constant Proportion Portfolio Insurance. Going forward, the company plans to launch three new Shari’ah compliant funds in the asset allocation, pension and capital protected categories; two of which are expected to be launched in the near future. In relation to peers, the performance of money market and income funds has largely remained favourable while all other funds performed lower than peers.

Total Assets under Management (AUMs) amounted to Rs. 8.7b (FY14: Rs. 8.4b, FY13: Rs. 5.3b) with market share of FAML declining slightly to 1.7% (FY14: 2%, FY13: 1.5%) by end-May 2015. There is a structured investment process in place. Compliance and risk functions monitor various aspects pertaining to regulations and market risk. However, scope of these support functions may be enhanced, going forward.

Management team at FAML has been strengthened and vacancies have been largely filled with the appointment of qualified resources. However, stability of the team is considered crucial in order to meet the organization’s long term objectives. Moreover, in an effort to increase share of retail segment and reduce investor concentration, retail sales teams have been developed and marketing infrastructure has been strengthened. Some increase in retail investor base has been noted over the last year; further efforts for bringing about growth in this area are on-going.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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