Press Release
JCR-VIS Reaffirms MQ Rating of Faysal Asset Management Limited
Karachi, March 25, 2016: 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 June 11, 2015.
With the launch of Faysal Islamic Asset Allocation Fund, the number of funds under management has increased to eight. Going forward, the company plans to launch new funds including a pioneering Margin Trading System fund, which is in its pre-IPO stage. The company manages advisory mandates, as well.
Following the implications of tax proposals announced in the budget, mutual fund industry experienced a decline in Assets under Management (AUMs) during FY15. However, the company managed to recover its AUMs owing to its revamped distribution plan. Accordingly, sales and distribution team was enhanced to increase the investor base. The quantum of retail investments also increased over the same period which indicated effectiveness of the plan; further efforts are ongoing. As of December 2015, AUMs amounted to Rs. 8.8b (FY15: Rs. 7.7b; FY14: Rs. 8.4b).
Key management team of FAML exhibits relevant market experience. Performance of Faysal Savings Growth and Faysal Balanced Growth Fund compares favorably to peers; in case of other funds, there is room for improvement. Fund performance will continue to be key factors in rating.
For further information on this rating announcement, please contact the undersigned (Ext: 516) or Mr. Mohammed Khalid Ali (Ext: 508) at 021-35311861 - 70 or fax to 021-35311873.
Jamal Abbas Zaidi
Advisor
Applicable Rating Criteria: Mutual Funds Rating (December 2006)
http://www.jcrvis.com.pk/Images/MFund-20061201-2.pdf