PACRA Retains Stability Rating of Faysal Money Market Fund

Lahore, The Pakistan Credit Rating Agency Limited (PACRA) has maintained the rating of the Faysal Money Market Fund (FMMF), emphasizing the Fund's low-risk stance. FMMF's primary aim is to produce competitive returns with minimal risk while ensuring liquidity, primarily by channeling investments into short-term government instruments. The rating highlights the Fund's strong credit and interest rate risk profile.

By June 2023, the fund's allocation was primarily in T-bills (~90.08%) and a considerable 8.7% was invested in banks rated AA+ and above. The Fund's Duration and Weighted Average Maturity (WAM) were marked at 51 days and 63 days respectively, both of which limit the fund's exposure to interest rate and credit risks. For FY23, FMMF reported an annualized return of 17.04%, almost in line with its benchmark of 17.01%. Concentration in the Fund's unit holding is moderate, with the top 10 investors accounting for ~65.7% of the Fund's net assets. However, this concentration is considered manageable given the Fund's primary investment in government short-term instruments. Any significant changes in the Fund's asset allocation affecting its credit quality or exposure to interest rate risks might influence its future rating. This information was sourced from the Pakistan Credit Rating Agency Limited.