Press Release

VIS Assigns Initial Fund Stability Rating to Faysal Government Securities Fund

Karachi, May 18, 2021: VIS Credit Rating Company Limited (VIS) has assigned the initial Fund Stability Rating (FSR) of Faysal Government Securities Fund (FSGF) at ‘AA (f)’ (Double A (f)).

Launched in March 2020, Faysal Government Securities Fund (FGSF) is an open ended income fund, managed by Faysal Asset Management. The fund’s objective is to provide competitive returns to its investors by investing primarily in Government Securities.

Assigned rating takes note of the fund’s Investment Policy Statement and liquid investment allocation portfolio. FGSF’s IPS holds a conservative risk profile stating that no investment shall be made below AA- issue/issuer. Month-on-month average analysis depict that majority of the fund’s assets were deployed in T-bills and PIBs while almost a quarter of the fund’s assets were placed in cash and cash equivalents. Credit quality exposures remained in line with VIS’s criteria for the assigned rating with investments comprising exposures in AA+ or above rated investment avenues. WAM of the fund is capped at 4 years and target duration of the fund has been capped at 6 months, for which the fund majorly complied during the period under review.

Unit holding pattern of the fund indicates high liquidity risk as the fund’s total investments are vested with 3 corporates. Fund size grew to Rs. 2.7b in the month of June’20, however; AUMs declined to 1.2b at end-Mar’21 on account of higher redemptions. Given the fund’s liquid investment allocation portfolio, ability to meet redemptions is considered sound.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 306) at 021-35311861-70 or email at .

Javed Callea

Applicable Rating Criteria: Fund Stability Ratings (December 2020)

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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited