Press Release

VIS Reaffirms Fund Stability Rating of Faysal Islamic Sovereign Plan-II (Under Faysal Islamic Sovereign Fund)

Karachi September 03, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Faysal Islamic Sovereign Plan-II (‘FISP- II’ 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 August 20, 2024

FISP-II was launched in Jan’24, with the objective to generate a competitive return with low risk, by investing primarily in Shariah Compliant Government Securities and Islamic Banks and Islamic Banking Windows of Conventional Banks.

Assigned rating incorporates FISP-II’s Assets under Management (AUM), which peaked in Dec’24 before declining considerably by Jun’25. While the Plan’s asset allocation largely complied with the parameters set out in the offering document, occasional breaches were noted during certain months in FY’25. Investments were predominantly concentrated in Ijarah Sukuks. The rating also reflects the Plan’s credit quality, with exposures primarily in avenues rated ‘AA’ and above, in line with the minimum threshold of ‘AA-’ stipulated in the offering document.

Assigned rating also incorporate the market and liquidity risk profile of FISP-II. The weighted average time to maturity (WAM) remained considerably below the capped limit of 4 years as outlined in the offering document. Additionally, the modified duration also remained below the defined threshold for the assigned rating. Liquidity profile of the Plan is considered sound, given the substantial portion of the liquid assets. The Plan’s AUM is dominated by the retail investors. Client concentration risk of the Plan is considered moderate. With regards to the performance, the Plan’s annualized return has outperformed its benchmark, but has underperformed relative to its peers, 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 03, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.