Press Release
JCR-VIS Revises Fund Stability Rating of Faysal Islamic Savings Growth Fund
Karachi, June 29, 2015: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the Fund Stability Rating (FSR) of Faysal Islamic Savings Growth Fund (FISGF) from ‘AA-(f)’ (Double A Minus (f)) to ‘A(f)’ (Single A (f)). The previous rating action was announced on August 2, 2013.
The revision in rating takes into account the deviation in actual asset allocation vis-à-vis the operational investment policy for the fund. As per policy, a maximum of 10% exposure could be taken in ‘A+’ rated counterparties whereas the remaining exposures were subject to rating of ‘AA-’ or higher. Actual asset allocation depicted more than 60% exposure to assets with a rating of ‘A’ from April 2014 onwards, indicating higher level of credit risk assumed by the fund vis-à-vis that envisaged in the investment policy.
Concentration in unit holding was high at end-9M15. However, given the liquid nature of invested assets, liquidity profile of the fund is considered sound; the fund may nevertheless benefit from a more diversified investor profile.
For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA (Ext. 604) at 021-35311861-70 or Mr. Maimoon Rasheed at 042- 35743411-13 or fax to 021-35311873.
Mohammed Khalid Ali
Advisor
Applicable Rating Criteria: Fund Stability Ratings (February 2012)
http://www.jcrvis.com.pk/Images/FSRMeth-201202.pdf