Faysal Financial Sector Opportunity Fund’s Rating Upheld by PACRA

Lahore, The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed its rating for the Faysal Financial Sector Opportunity Fund (FFSOF), highlighting the Fund's moderate risk standing. The Fund aims to deliver competitive returns to its stakeholders by primarily venturing into money market and debt instruments, with a special emphasis on financial sector tools.

As the data from June 2023 illustrates, the Fund's investments were spread across bank deposits (~89.50%) rated A+ and higher, TFC/Sukuks (~6.17%) mostly in the AA-rated category, with the rest dedicated to other assets. Both the Duration and the Weighted Average Maturity (WAM) of the Fund were observed at 7 days, successfully curtailing potential risks arising from interest and credit rate fluctuations. The Faysal Financial Sector Opportunity Fund (FFSOF) has managed to post an annualized return of 18.68% for FY23, slightly surpassing its benchmark at 18.33%.

Approximately 53.7% of the Fund's assets are held by the top ten investors, which maintains redemption pressure at a moderate scale. In the foreseeable future, pivotal changes in the Fund's asset distribution strategy, especially those influencing its credit standing or its vulnerability to interest rate shifts, will be paramount in its rating assessment. This information was sourced from the Pakistan Credit Rating Agency Limited.