Pakistan Credit Rating Agency Limited assigns stability rating to Faysal Income and Growth Fund

Lahore, August 20, 2015 (PPI-OT):The Pakistan Credit Rating Agency (PACRA) has assigned the stability rating of ‘A'(f) (Single A; fund rating) to Faysal Income and Growth Fund (FIGF), an open-end income fund. The fund’s rating denotes a strong capacity to manage relative stability in returns and low exposure to risks. 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-Jun’15, the fund is primarily invested in government securities (PIBs: 29%, Tbills: 18%), while remaining assets are invested in daily cash balances with good quality banks (23%) and high rated (‘AA-‘ and above) TFCs/Sukuks (16%). The other major avenue is margin trading system (end-Jun’15: 14%) which, due to self liquidating nature, possesses less risk over short tenure. The unit holding pattern of the fund is concentrated with top10 investors representing 63% of the fund’s assets.

Going forward, the fund intends to maintain relatively high exposure towards government securities. Meanwhile, it plans to have sizeable exposure in TFCs, though not exceeding 25% of fund’s net assets. Exposure in margin trading system would be kept upto 25%. Meanwhile, cash holdings would be managed with ‘A’ and above rated banks.

For more information, contact:
Hammad Rashid
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