Press Release
JCR-VIS Upgrades MQ rating of Faysal Asset Management Limited to AM2-
Karachi, April 5, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has upgraded the Management Quality rating of Faysal Asset Management Limited (FAML) from ‘AM3+’ (AM Three Plus) to ‘AM2-’ (AM Two Minus). Outlook on the rating is ‘Stable’.
The rating upgrade incorporates improvement witnessed both on the qualitative and quantitative fronts. The Board of Directors of Faysal Bank Limited has approved the acquisition of 20% holding in FAML, increasing its stake in the company to 50%, subject to regulatory approvals. Management team of the company has been strengthened with new appointments on the investment and sales side.
Various risk metrics are deployed by both the risk and fund management personnel that feed into the investment decision making process. Performance of balanced fund under management has showcased significant improvement over the last year, while prior period return was also comparable to peer group average. In the fixed income category, exposures were largely restricted to bank deposits earlier though the funds have started assuming exposures in debt instruments lately. Both Faysal Income & Growth Fund and Faysal Savings Growth Fund have posted consistent results over the years and have been amongst the best performing funds in their respective categories.
Assets under management were higher at Rs. 7.5b as at end-December 2009 in relation to the preceding year, though investor concentration remains an issue. Assets are largely deployed in liquid avenues, which have facilitated FAML in meeting redemption requests in times of high liquidity pressure.
For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 35311861-70 or fax to 35311872-3.
Safdar Kazi
Director
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