Press Release
VIS Assigns Initial Fund Stability Rating to Alfalah Income & Growth Fund
Karachi, January 20, 2026: VIS Credit Rating Company Limited (VIS) has assigned the initial Fund Stability Rating (FSR) of ‘A (f)’ (Single A (f)) to Alfalah Income & Growth Fund (‘AIGF’ or ‘the Fund’). The medium to long-term rating of ‘A (f)’ denotes Moderate degree of stability in Net Asset Value; Risk factors may vary with possible changes in the economy.
The Fund was launched on October 05, 2010, under Faysal Asset Management Limited. The prime objective of the Fund is to provide superior long-term risk adjusted returns by investing in a diverse pool of fixed income securities, including money market instruments. In particular, the aim is to minimize interest rate risk through duration management and default risk portfolio diversification. The Fund will employ prudent and disciplined investment management, and maximize the total investment return through systematic and informed security selection. The Fund was acquired by Alfalah Asset Management Limited in January 2025.
The assigned rating reflects the Fund’s asset allocation strategy, which broadly remained aligned with the parameters stated in the offering document, with the portfolio, on average, concentrated in cash balances and Short-Term Sukuks (STS). While the Fund size is near the regulatory requirement through support from associates, management intends to further enhance the Fund’s size through targeted marketing initiatives and increased outreach to both retail and corporate investors. Assigned rating also reflects the credit quality of the Fund, with credit exposures skewed towards avenues rated AA-, A and B. The Fund’s credit quality was impacted by non-performing exposures, against which provisioning has already been recognized. While the offering document allows for investments below investment grade, management has communicated its intention to maintain credit exposures in A rated and above instruments going forward. Adherence to the stated operational plan will remain important for the rating, going forward.
The weighted average time to maturity (WAM) is in line with the offering document. Liquidity profile of the Fund is considered sound, supported by quantum of liquid assets. The associates dominate the Fund’s AUM mix, contributing to elevated concentration risk. In terms of the performance, the Fund is placed in the 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