VIS Reaffirms Fund Stability Rating of Faysal Islamic Savings Growth Fund

Karachi, October 05, 2020 (PPI-OT): 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 more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873