Press Release
JCR-VIS assigns fund stability rating to Faysal Income & Growth Fund
Karachi, April 3, 2006: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned a fund stability rating of ‘A+(f)’, indicating ‘moderate degree of stability in Net Asset Value’ to Faysal Income & Growth Fund (FIGF). The fund stability rating is based on the investment policy of FIGF by way of which the fund will be largely invested in government paper and thus would be able to maintain strong portfolio credit quality. The interest rate risk will also be minimized as the fund will only invest in short term instruments. Currently the fund is largely invested in short term bank deposits and will be deployed in line with its stated objectives over time. There is a degree of concentration in unit-holding which is expected to dilute over time as the management company strengthens its marketing function.
JCR-VIS has also assigned a Management Quality rating of ‘AM3’, denoting ‘good quality management’ to Faysal Asset Management Limited (FAML). Investment policies have been clearly defined for both the funds under management. The Management Quality rating takes into account the investment discipline imposed by the management company. The company shares the strong franchise value of Faysal Bank Limited which also provides enhanced market outreach. The information systems in use are capable of supporting the operations of the company, though upgradation may be required over time. Establishing a full-fledged in-house research department will provide the company an added advantage over its competitors.
For further information on this rating announcement, please contact Mr. Safdar Kazi (Ext: 221) or Ms. Sabeen Saleem (Ext: 222) at 5671822/5671833/5680996 or fax to 5681105/5671600.
Faheem Ahmad
President & CEO