Press Release

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

Karachi, July 10, 2024: VIS Credit Rating Company Limited (VIS) has assigned the initial Fund Stability Rating (FSR) of AA(f) (Double A (f)) to Faysal Islamic Sovereign Plan-I (FISP- 1). 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.

The Investment Objective of the plan (FISP-1) 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 Assets under Management, which exhibited an increase from inception until December 2023, followed by a decline through May 2024. The FISP-1 portfolio is predominantly comprised of investments in Ijara Sukuk. The FISP-1is compliant with its mandate, investing in instruments only rated AA- and above.

Assigned ratings also incorporate the market and liquidity risk profile of FISP-1 wherein, the weighted average time to maturity remained comfortably within the specified duration outlined in the Investment Policy statement. Furthermore, the modified duration of FSIP-1 consistently remained below the specified limit for the assigned ratings. FISP-1 strategic liquid asset allocation deems its ability to meet redemptions as adequate. Given ratings also underpinned by FISP-1 performance in terms of providing returns to investors wherein outperformed the benchmark return and peer average on YTD basis both as at end-FY23 and in 11MFY24.

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 .