Lahore, The Pakistan Credit Rating Agency Limited (PACRA) continues to uphold the rating of the Faysal Income and Growth Fund (FIGF), underscoring its moderate risk profile. FIGF seeks to offer investors optimal returns by maintaining a diversified portfolio, a blend of long-term fixed instruments and short-term money market securities.
As of June 2023, the Fund's assets were largely distributed between bank deposits (~77.95%) rated A+ and higher and TFC/Sukuks (~19.43%), primarily in the AA-rated category. The Fund's duration stood at 22 days, which mitigates its exposure to interest rate risks. Conversely, a Weighted Average Maturity (WAM) of 110 days introduces a degree of credit risk. Asset concentration is pronounced, with the top 10 investors holding around ~94.4% of the Fund's net assets. Nevertheless, this concentration risk is deemed manageable, courtesy of the Fund's strategic investment in liquid assets. Significant alterations to the Fund's asset distribution, which could shift its credit standing or interest rate risk profile, will play a crucial role in its future rating evaluations. This information was sourced from the Pakistan Credit Rating Agency Limited.