Press Release
VIS Reaffirms Fund Stability Rating of Faysal Islamic Financial Growth Plan-I (Under Faysal Islamic Financial Growth Fund)
Karachi, September 03, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed Fund Stability Rating (FSR) of Faysal Islamic Financial Growth Plan-I (‘FIFGP- I’ or ‘the Plan’) at A+(f) (Single A Plus (f)). The FSR of ‘A+(f)’ denotes Moderate degree of stability in Net Asset Value; Risk factors may vary with possible changes in the economy. Previous rating action was announced on August 23, 2024.
FIFGP-I was launched in July’23, with the primary objective to provide competitive risk adjusted returns to its investors by investing in a diversified portfolio of long, medium and short-term Shariah Compliant instruments while taking into account liquidity considerations.
Assigned rating take into account FIFGP- I’s Assets under Management (AUM), with the asset allocation complying with the parameters as stipulated in the offering document. On average, the portfolio was concentrated in cash, Ijarah Sukuks and placement with banks. Assigned rating also reflects the credit quality of the Plan. While the offering document allows for investments not below investment grade, the management had conveyed its operational plan not to invest below the avenues rated ‘A+’, which is violated in certain months during FY25. The majority of the exposures comprised Government Securities/AAA rated instruments. Going forward, adherence to the management’s operational plan along with timely revision of the asset allocation policy and implementation of the same will be important for the rating.
Assigned rating also factors in liquidity and market risk of the Plan. The weighted average time to maturity (WAM) has remained well within the threshold defined in the offering document. The liquidity profile of the Plan is considered sound, supported by the quantum of liquid assets. Plan’s AUM continues to be dominated by retail clients. Additionally, client concentration risk is considered on the higher side. With regards to the performance, the Plan’s annualized return outperformed its benchmark. However, it underperformed relative to peers, positioning the Plan in the 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