Press Release
VIS Upgrades Management Quality Rating of Faysal Asset Management Limited
Karachi, September 10, 2024: VIS Credit Rating Company Limited (VIS) has upgraded the Management Quality Rating (MQR) of Faysal Asset Management Limited (FAML) to ‘AM1’ (AM-One). The rating signifies that the asset manager exhibits excellent management characteristics. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on December 29, 2023.
Incorporated in 2003, Faysal Asset Management Limited (‘FAML’ or ‘the AMC’) is a subsidiary of Faysal Bank Limited (FBL). The AMC has over time established itself as a prominent player in the asset management industry, propelled by significant growth in Assets Under Management (AUM). It has successfully transitioned a significant portion of its AUMs to Shariah-compliant investments, while retaining and attracting investors, establishing itself as a key player in the Islamic asset management sector. Additionally, FAML has implemented a well-structured investment process that reflects a disciplined and strategic approach to portfolio management. FAML’s commitment to enhancing its governance framework, including improvements in the Board structure, the establishment of a Shariah Supervisory Board, and the augmentation of the management team and internal policies, has further bolstered its market presence. These efforts, along with a targeted strategy focused on delivering higher returns for clients, have reinforced FAML’s position in the industry. Additionally, FAML’s favorable retail penetration, compared to its peers, continues to contribute to its competitive edge.
The rating also reflects ongoing support from the parent company, which has contributed to improvements in FAML's operational efficiency and profitability. The ability to leverage the Bank's network and the expertise gained from its transition to an Islamic bank will be crucial in creating synergies and enhancing efficiencies for the AMC. Moving forward, the successful implementation of the planned strategy to expand product offerings, increase investments in digital initiatives, and maintain a strong commitment to governance and internal control frameworks will remain key factors for the rating.
For further information on this rating, please contact 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria:
Asset Management Companies
https://docs.vis.com.pk/Methodologies%202024/AMC-Methodology-201906.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf
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