Islamabad: The Faysal Halal Amdani Fund, known for its low-risk investment approach, has successfully retained its AA(f) stability rating from The Pakistan Credit Rating Agency Limited (PACRA), maintaining a stable outlook. The fund continues to deliver competitive returns while prioritizing capital preservation through investments in Shariah-compliant financial instruments.

According to The Pakistan Credit Rating Agency Limited, the Faysal Halal Amdani Fund adheres to a conservative investment strategy, primarily placing its resources in low-risk bank deposits, money market, and debt securities that comply with Shariah principles. As of the end of June 2024, the fund’s portfolio was highly diversified, with 36.29% invested in government securities and AAA-rated avenues, 28.97% in AA+ rated securities, and 21.26% in AA-rated categories.

The majority of the fund’s investments, amounting to approximately 80.74%, were held in cash and bank placements, underscoring its focus on liquidity and safety. Additionally, 10.14% of the fund’s assets were allocated to short-term Sukuks, with 5.78% in Ijarah Sukuk, reflecting its adherence to Shariah-compliant investment avenues.

The Weighted Average Maturity (WAM) of the fund stood at 46 days as of June 2024, indicating a limited exposure to credit risk, while a duration of 29 days minimized its interest rate risk. Despite a moderate concentration of the top ten investors, which represented about 33.24% of the fund’s assets, the fund’s robust liquidity management practices have effectively mitigated potential redemption pressures.

PACRA notes that ongoing adherence to the fund’s conservative investment policy and compliance with rating criteria are crucial for maintaining the current rating. Any significant adjustments in these areas could influence the fund’s future stability ratings.