Press Release

VIS Reaffirms Fund Stability Rating to Faysal Islamic Sovereign Plan-I (Under Faysal Islamic Sovereign Fund)

Karachi, September 05, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Faysal Islamic Sovereign Plan-I (‘FISP- I’ or ‘the Plan’) at AA(f) (Double A (f)). The FSR of ‘AA(f)’ denotes high degree of stability in Net Asset Value. Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on July 10, 2024.

FISP-I was launched in Feb’23. The Investment Objective of the Plan is to generate a competitive return with low risk, by investing primarily in Shariah Compliant Government Securities and Islamic Banks and licensed Islamic Banking Windows of Conventional Banks

Assigned ratings take into account FISP-1’s Assets under Management (AUM), which peaked in Nov’24 before recording a substantial decline by Jun’25. The Plan’s asset allocation generally remained within the parameters set out in the offering document for most of the year, although it fell short of the prescribed threshold in certain months during FY25. Investments were primarily concentrated in Ijarah Sukuks, followed by cash balances. The ratings also incorporate the credit quality of the Plan’s exposures, which remained in line with the offering document’s thresholds and were largely placed in avenues rated ‘AA’ and above, predominantly comprising government securities.

Assigned ratings also incorporate the Plan’s market and liquidity risk profile. The weighted average maturity (WAM) remained well within the 4-year cap outlined in the offering document, while the modified duration also complied with the prescribed threshold for the assigned rating. The liquidity profile of the Plan is considered sound, supported by the sizeable quantum of liquid assets. The AUM mix of the Plan is dominated by corporate investors. Additionally, client concentration risk is considered higher. In terms of the performance, the Plan’s annualized return has underperformed both its benchmark return as well as peer average, placing the Plan under third 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 September 05, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.