Press Release

VIS Reaffirms Fund Stability Rating of Faysal Islamic Savings Growth Fund

Karachi, October 5, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of Faysal Islamic Savings Growth Fund (FISGF) at ‘A+(f)’ (Single A Plus (f)). Previous rating action was announced on May 13, 2019.

The rating incorporates policy guidelines and actual investment allocation portfolio. On average basis, almost half of net assets are held as cash and bank balances, thus supporting liquidity. Credit quality of exposures has remained in line with VIS’s criteria for the assigned rating with investments comprising exposures in at least ‘A+’ rated investment avenues. The fund’s exposure to interest rate risk is expected to remain manageable as return on Islamic instruments held are re-priced to market benchmark rates periodically. Maximum limit for weighted average maturity/duration of the fund is 180 days.

With the aggressive stance of the asset management company, net assets of the fund grew significantly from Rs. 970.1m at end- July 2018 to Rs. 3.1b at end-August 2020. Slight variation in AUMs, during the period under review, is largely a function of investment in parent company’s provident fund along with routine redemptions. Unit holding pattern of the fund indicates considerable investor concentration at end-FY20. The fund, however, can meet redemption requirements given the liquidity profile of assets.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 201) or the undersigned (Ext: 306) at 021-35311861-70 or email at info@vis.com.pk.

Faryal Ahmad Faheem
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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .