Lahore, October 20, 2021 (PPI-OT):The Faysal MTS Fund, first of its kind in the industry, primarily maintained an exposure of ~46% in the MTS market at end Jun’21. The cash balances ~40% were majorly placed in ‘AA’ and above rated banks. The Investment Policy of the Fund restrict it to invest in below ‘A-‘ rated banks. The rating incorporates the volatile nature of the equity market in Pakistan, which impacts the NAV stability of the Fund as the major part of the investments are in MTS.

The duration of the Fund remains 41 days, at Jun’21. The unit holding pattern of the Fund is concentrated with the top 10 investors representing ~46% of portfolio, which exposes the Fund to moderate level of redemption pressure. Going forward, the Fund intends to take exposure in MTS and cash and some portion would remains in T-Bills. Material changes in the funds asset allocation strategy, which could negatively impact the Fund’s credit quality and exposure to interest rate risk, remain critical for the rating.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com