Faysal Savings Growth Fund’s Rating Sustained by PACRA Amid Moderate Risk Strategy

Lahore, The Pakistan Credit Rating Agency Limited (PACRA) has maintained the rating of the Faysal Savings Growth Fund ("FSGF"), reflecting the Fund's balanced risk profile. With an objective to yield competitive returns, FSGF primarily funnels its investments into debt and fixed income instruments possessing investment-grade credit ratings. The assigned rating mirrors the Fund's moderate resilience in terms of its credit and interest rate risks. An analysis as of June 2023 revealed that the Fund allocated ~8.64% to government securities (including PIBs and GOP Ijara sukuks), ~29.68% in Bank deposits predominantly rated AA- and higher, and a dominant ~54.22% in TFC/Sukuks, majorly in the AA+ bracket.

With a Duration at 84 days, the Fund is open to interest rate risks, while its WAM positioned at 683 days suggests exposure to credit risks. For its operations, the FSGF announced an annualized return of 15.91%, albeit trailing its benchmark of 18.33%. The Fund's net assets appear moderately concentrated, with the top 10 investors holding about ~68.46%, distributed evenly, leading to a moderate redemption pressure scenario. Notably, any strategic shifts in the Fund's asset allocations that influence its credit quality or interest rate risk stance will be pivotal in determining future ratings. This information was sourced from the Pakistan Credit Rating Agency Limited.