Press Release
JCR-VIS Assigns Fund Stability Rating of A+(f) to Faysal Islamic Savings Growth Fund
Karachi, May 20, 2011: JCR-VIS Credit Rating Company Limited has assigned Fund Stability Rating (FSR) of ‘A+(f)’ (Single A Plus (f)) to Faysal Islamic Savings Growth Fund (FISGF).
The fund has been launched in June 2010. It is structured as an open-end Shari’ah Compliant income fund. According to the operational policy of the fund, exposure in ‘A+’ or higher rated exposures shall comprise at least 85% of net assets. Remaining net assets can be invested in exposures rated ‘A’ or ‘A-’. Moreover, investment in Sukuks will be subject to minimum credit rating of ‘AA-’. Weighted average time to maturity of the portfolio shall not exceed 180 days.
Risk profile of actual asset allocation of the fund at end-April 2011 signifies low risk as 39% of net assets of the fund comprised government securities and remaining were largely invested in AA rated exposures. Furthermore, weighted average maturity of net assets was low at 21 days. Prior to December 2010, there have been instances where significant proportion of net assets was invested in ‘A’ rated exposures. Investor profile of the fund features concentration; however, in view of the strong liquidity profile of exposures, ability of the fund to meet redemptions in a timely manner is considered sound.
For further information on this rating announcement, please contact Ms. Sabeen Saleem, CFA (Ext. 510) or Ms. Sobia Maqbool, CFA (Ext: 506) at (92-213) 5311861-70 or fax to (92-213) 5311872-3.
Faheem Ahmad
President & CEO