PACRA Maintains Stability Rating of Faysal Income and Growth Fund

Lahore, June 20, 2018 (PPI-OT): 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 fund’s strong credit quality and robust liquidity profile. At end-Dec 17, fund’s exposure with bank placements was 72%. The majority of the exposure was with banks rated ‘AA-‘ (i.e. 23%), while an exposure with ‘A+’ rated banks was 42%. The remaining assets of ~27% were invested in TFCs / sukuks with rating ‘A+’ and above. The unit holding pattern of the fund is highly concentrated with top10 investors representing 76% of the fund’s assets, (of which ~2% are owned investments) which exposes the fund to a high level of redemption pressure.

Going forward, the fund intends to maintain its exposure towards debt instruments. The remaining assets of the fund will be placed with banks rated ‘AA-‘ and A+. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remain critical for the rating.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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