Press Release
VIS Assigns Initial Fund Stability Rating to Faysal Islamic Cash Fund
Karachi, November 4, 2021: VIS Credit Rating Company Limited (VIS) has assigned initial Fund Stability Rating (FSR) of Faysal Islamic Cash Fund (FICF) at ‘AA (f)’ (Double A (f)).
Launched in August 2020, Faysal Islamic Cash Fund (FICF) is an open end money market fund, managed by Faysal Asset Management. The fund’s objective is to seek maximum possible preservation of capital and a reasonable rate of return via investing primarily in Shariah Compliant money market securities.
Assigned rating takes into account the fund’s liquid asset allocation and sound credit quality, with sizeable exposures limited to AA and above rated counterparties, in line with the Investment Policy Statement (IPS). The fund managed to place over 81% of its assets on an average in cash placements during FY21 while 87% of the portfolio remained vested in AA rated issue/issuer. Market risk also remains low with funds investment policy limiting exposures in shorter tenors of less than 90 days.
Fund size significantly grew to Rs.12b end-June’21 (Rs. 1.2b end-June’20). The fund primarily comprsises of corporates and while investor concentration remains high, ability to meet redumtions is considered sound given liquid asset portfolio of the fund.
For further information on this rating announcement, please contact Ms. Sara Ahmad (Ext: 207) or the undersigned (Ext: 301) at 021-35311861-70 or email at info@vis.com.pk
Javed Callea
Advisor
Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf