Press Release

VIS Reaffirms Fund Stability Rating of Alfalah Government Securities Fund-II (Formerly: Faysal Government Securities Fund)

Karachi, January 20, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Alfalah Government Securities Fund-II (Formerly: Faysal Government Securities Fund) (‘AGSF-II’ or ‘the Fund’) at ‘AA (f)’ (Double A (f)). The medium to long-term rating of ‘AA (f)’ denotes high degree of stability in Net Assets Value. Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on October 28, 2024.

AGSF-II, previously operating under the name of Faysal Government Securities Fund, was Launched in March 2020 as an open-ended mutual fund categorized as an income fund, with an aim to provide competitive returns by investing primarily in Government Securities, offering units to retail and institutional investors. Following the acquisition of the Fund from Faysal Asset Management Limited, the Fund’s size increased significantly to PKR 3,054m as of Aug’25.

Assigned rating reflects the asset allocation strategy of the Fund, which largely remained within the parameters defined in the offering document, though certain non-compliances were noted in certain months, with investments largely placed in Pakistan Investment Bonds (PIBs). Rating also incorporates the credit quality of the Fund. Following the acquisition from Faysal Asset Management Limited in Jan’25, the Fund’s portfolio was largely placed in government securities/AAA rated avenues, with a negligible portion held in AA– rated securities. Going forward, maintenance of exposures above AA- rated exposures will remain important for the rating. Weighted average time to maturity (WAM) has remained within the thresholds outlined in the offering document, despite the increase overtime. Liquidity profile of the Fund is considered sound. The corporate investors dominate the Fund’s AUM mix, reflective of elevated concentration risk. In terms of the performance, the Fund is placed in fourth quartile

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.




Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/Methodologies-2025/FSR-Methodology-Jan-2025.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (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. 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. 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 January 20, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.