Press Release
VIS Reaffirms Fund Stability Rating of Faysal Islamic Cash Fund
Karachi, December 13, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed Fund Stability Rating (FSR) of Faysal Islamic Cash Fund (FICF) at ‘AA (f)’ (Double A (f)). The previous rating action was announced on November 04, 2021.
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. The fund size has grown over time, increasing to Rs.16b (excluding fund of fund) at end June 2022 (FY21: Rs.11b).
Assigned rating incorporates liquid asset allocation and sound credit quality, with sizeable exposures confined to AA and above rated categories, as per laid down by Investment Policy Statement (IPS). Credit quality of the fund has improved over time with a larger composition of investments in ‘AAA’ rated avenues versus past year. On average, the largest concentration of investments are vested in AA rated issue/issuer. Market risk also remains low with funds investment policy limiting exposures in shorter tenors.
Investor concentration of the fund remains on the higher side, albeit improving year over year. While retail client base increased in FY22, corporate clients predominantly dominate the fund composition which leads to greater redemption risk.
For further information on this rating announcement, please contact Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 207) at 021-35311861-70 or email at info@vis.com.pk.
Sara Ahmed
Director
Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf