PACRA Retains Stability Rating of Faysal MTS Fund

Lahore, The Pakistan Credit Rating Agency Limited (PACRA) has continued its rating for the Faysal MTS Fund, a pioneer in the industry, emphasizing its moderate risk profile and its focus on investments in the MTS market. The Fund's intent revolves around delivering competitive returns, chiefly through investments in the MTS market. This information was sourced from the Pakistan Credit Rating Agency Limited.

By June 2023, allocations within the Fund stood at ~18.5% in T-bills, ~33.3% in Banks predominantly in AA-, and a notable ~45.6% dedicated for the Margin Trading System. Both the Duration and Weighted Average Maturity (WAM) of the Fund were gauged at 11 days and 40 days respectively, effectively reducing the exposure to interest rate and credit risks. For the fiscal year 2023, the Faysal MTS Fund (FMTSF) delivered an annualized return of 18.38%, just ahead of its benchmark of 18.33%. The top ten investors hold about ~49% of the Fund's total assets, thereby exerting a limited redemption pressure on the fund. Any substantial shift in the Fund's asset distribution strategy, altering its creditworthiness or its susceptibility to interest rate fluctuations, could play a significant role in determining its future rating.