Press Release

VIS Assigns Initial Fund Stability Rating to Faysal Cash Fund

Karachi, December 26, 2022: VIS Credit Rating Company Limited (VIS) has assigned initial Fund Stability Rating (FSR) to Faysal Cash (FCF) at ‘AA+ (f)’ (Double A Plus (f)). The medium to long-term rating of ‘AA+’ denotes high degree of stability in NAV, modest risk but may vary from time to time because of changing economic conditions.

Launched in January 2021, Faysal Cash Fund (FCF) is an open-ended money market fund, managed by Faysal Asset Management Limited. The fund’s objective is to provide competitive returns to its investors through investments placed primarily in short term and money market instruments.

Assigned rating takes note of fund’s sound credit quality and liquid investment portfolio. As per FCF’s Investment Policy Statement (IPS), credit exposure has been restricted to minimum AA rated issue/issuer. Barring a few months, the fund’s asset allocation plan remained compliant with the stipulated requirements of the fund’s operational investment policy statement. On a monthly average basis, overall AUMs remained deployed in cash, T-bills and short term Sukuk during FY22. Credit quality during the year also remained in line with the assigned rating. Rating also takes into account the Weighted Average Maturity (WAM) of the fund, which is capped at 90 days. The fund remained compliant during the period under review.

The fund’s investment portfolio comprises of a total of 173 investors with the majority accounting for retail investors, while 1/3rd proportion included associates and related corporates. Top-10 investors encompass 81% of the fund’s investment portfolio, which depicts higher concentration, although given the fund’s liquid asset allocation plan, the fund’s ability to meet redemptions is considered sound. Fund performance has depicted volatility with the fund largely underperforming the benchmark return and the peer average. Improvement in fund performance, going forward, remains important from rating perspective.

For further information on this rating announcement, please contact Ms. Syeda Batool Zehra Zaidi (Ext: 210) or the undersigned (Ext: 207) at 021-35311861-70 or email at info@vis.com.pk.



Sara Ahmed
Director

Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .