Press Release

VIS Reaffirms Fund Stability Rating of Faysal Islamic Savings Growth Fund

Karachi, Dec 27, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) of Faysal Islamic Savings Growth Fund (“FISGF” or “the Fund”) at ‘A+ (f)’ (A Plus (f)). The medium to long-term rating of ‘A+’ denotes moderate degree of stability in Net Asset Value; Risk factors may vary with possible changes in the economy. The previous rating action was announced on December 15, 2023.

Launched in July 2010, Faysal Islamic Savings Growth Fund (FISGF) is an open-end income fund, managed by Faysal Asset Management. The objective of the fund is to provide maximum possible preservation of capital and a reasonable rate of return via investing in Shariah Compliant money market and debt securities having good credit quality rating and liquidity.

Assigned rating takes into account the Fund’s asset allocation, with Assets Under Management (AUM) contracting by ~52% as at Jun’24 compared to Jun’23. During FY24, the Fund’s asset allocation generally remained aligned with its offering document though breach of exposure on cash placements and Sukuks were noted in Apr’24. On average, the Fund’s portfolio primarily comprised of cash placements followed by Sukuks and GoP Ijara. Rating also incorporates the credit quality of the Fund, with allocations mostly in A rated instruments followed by exposures in government securities and AA+ rated assets. Though the Fund ‘s credit quality dropped below the VIS Benchmarks during FY24, it has however improved to the benchmark levels in the current fiscal year. Going forward, maintenance of the credit quality will be important for the assigned rating.

The Fund complied with the weighted average time to maturity (WAM) and duration requirements, consistently remaining below the defined benchmark in the offering document. As at Jun’24, associated investors accounted for the majority of the AUM mix while corporate investors represent the remaining portion of the investments. Also, the Fund's client concentration risk decreased during the review period, though remaining high.

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/docs/FundstabilityRating.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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