Press Release

JCR-VIS Upgrades Fund Stability Rating of Faysal Islamic Savings Growth Fund

Karachi, November 20, 2012: JCR-VIS Credit Rating Company Limited has upgraded the Fund Stability Rating (FSR) of Faysal Islamic Savings Growth Fund (FISGF) to ‘AA-(f)’ (Double A Minus (f)) from ‘A+(f)’ (Single A Plus (f)).

The rating incorporates low risk profile of the fund as evident from actual asset allocation and exposure limits defined in the operational investment policy. As per operational investment policy, investment in ‘AA-’ rated instruments has to comprise at least 90% of net assets and remaining net assets can be deployed in ‘A+’ rated exposures. At end-Oct’12, more than 50% of the fund was invested in government securities. Other investment avenues comprised cash balances with banks, commercial paper and sukuks. Investment in ‘AA’ and higher rated instruments comprised 96% of total assets at end-Oct’12. Exposure in sukuks with rating in the A band, representing 2% of net assets, was offloaded in early Nov’12.

According to the operational investment policy, maximum duration of the fund is capped at 180 days, signifying low exposure to profit rate risk. Given that Shari’ah compliant instruments available in the market have a maximum rate reset period of six months, the fund’s duration is expected to remain in line with the operational investment policy.

Unit holding pattern of the fund features concentration. Nevertheless, with net assets of the fund predominantly invested in liquid avenues, redemptions can be met comfortably by the fund.


For further information on this rating announcement, please contact Mr. Javed Callea (Ext. 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at (92-213) 5311861-70 or fax to (92-213) 5311872-3.




Jamal Abbas Zaidi
Deputy CEO

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 2012 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .