Press Release

VIS Reaffirms Fund Stability Rating of Faysal Islamic Cash Fund

Karachi, Dec 27, 2024: VIS Credit Rating Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) of Faysal Islamic Cash Fund (‘FICF’ or ‘the Fund) at ‘AA (f)’ (Double A (f)). The medium to long-term rating of ‘AA’ 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. The previous rating action was announced on December 15, 2023

Launched in August 2020, FICF is an open-end money market fund. The objective of the fund is to seek maximum possible preservation of capital and a reasonable rate of return via investing primarily in Shariah Compliant money market securities.

The assigned rating reflects the asset allocation strategy, which breached permissible exposure limits for fund placements during certain months as well as on an average basis. However, the remaining asset allocation adhered to the parameters defined in the offering document. On average, cash deposits constituted majority of the Fund’s portfolio, followed by allocations to fund placements and short-term sukuk. Assigned rating also takes into account the credit quality of the Fund, as it maintains exposures in government securities/AAA rated assets, in accordance with the stipulations outlined in the offering document, which requires investments in securities rated AA and above.

The Fund complied with the weighted average time to maturity (WAM) and duration requirements, consistently remaining below the defined benchmark in the offering document. Corporate investors continue to dominate the Fund, representing around 97% of the fund’s net assets as at Jun‘24. Additionally, the client concentration risk is considered low, with the top 10 investors representing ~5% of the fund’s net assets as at Jun’24. The Fund was the top performer during FY24 with the Fund’s year-to-date (YTD) return outperforming the peer average return and placed in the first 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/docs/FundstabilityRating.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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .