JCR-VIS Credit Rating Company assigns Fund Stability Rating to Faysal Financial Sector Opportunity Fund
Karachi, December 10, 2014 (PPI-OT): JCR-VIS Credit Rating Company Limited has assigned Fund Stability Rating (FSR) of ‘AA-(f)’ (Double A Minus (f)) to Faysal Financial Sector Opportunity Fund (FFSOF).
The rating assigned to FFSOF takes into account the risk appetite of the fund, as laid down in the investment policy. As per its mandate, FFSOF is designed as an income fund with a minimum of 70% exposure to be taken in financial sector instruments.
All credit exposures are subject to minimum rating of ‘AA-’ with the exception of 10% of assets which may be deployed in ‘A+’ rated exposures and another 5% that may be invested in Margin Trading System. While majority assets were initially deployed in cash equivalents, over time, the fund has built exposure in TFCs/Sukuk.
The fund has also intermittently taken exposure in long term government paper. Duration of the fund is capped at 180 days by policy while actual duration was lower than this limit, as per most recent data.
Unit holding pattern features notable concentration, which has contributed to the volatility in fund size over time. While the fund is expected to be able to meet redemptions in a timely manner, given the quality of assets, the fund may nevertheless benefit from a larger and more diversified investor base to implement its desired strategy.
For more information, contact:
Ms. Sobia Maqbool
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi