Press Release

JCR-VIS Reaffirms MQ Rating of Faysal Asset Management Limited
 

Karachi, June 11, 2015: JCR-VIS Credit Rating Company Ltd. has reaffirmed the Management Quality Rating of Faysal Asset Management Limited (FAML) at ‘AM3+’ (AM-Three Plus). Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on December 27, 2013.

FAML manages a total product suite comprising seven open end funds, two SMAs and five mandates under the format of Constant Proportion Portfolio Insurance. Going forward, the company plans to launch three new Shari’ah compliant funds in the asset allocation, pension and capital protected categories; two of which are expected to be launched in the near future. In relation to peers, the performance of money market and income funds has largely remained favorable while all other funds performed lower than peers.

Total Assets under Management (AUMs) amounted to Rs. 8.7b (FY14: Rs. 8.4b, FY13: Rs. 5.3b) with market share of FAML declining slightly to 1.7% (FY14: 2%, FY13: 1.5%) by end-May 2015. There is a structured investment process in place. Compliance and risk functions monitor various aspects pertaining to regulations and market risk. However, scope of these support functions may be enhanced, going forward.

Management team at FAML has been strengthened and vacancies have been largely filled with the appointment of qualified resources. However, stability of the team is considered crucial in order to meet the organization’s long term objectives. Moreover, in an effort to increase share of retail segment and reduce investor concentration, retail sales teams have been developed and marketing infrastructure has been strengthened. Some increase in retail investor base has been noted over the last year; further efforts for bringing about growth in this area are on-going.

For further information on this rating announcement, please contact the undersigned (Ext. 501) or Mr. Maimoon Rasheed at 042-35743411-13.


Javed Callea
Advisor

Applicable Rating Criteria: Mutual Funds Rating (December 2006)
http://www.jcrvis.com.pk/Images/MFund-20061201-2.pdf

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Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. JCR-VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2015 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

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