Press Release

VIS reaffirms Fund Stability Rating of Faysal Islamic Savings Growth Fund

Karachi, May 13, 2019: 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)). The rating of ‘A+’ denotes moderate degree of stability in NAV. Moreover, risk factors may vary with possible changes in the economy. Previous rating action was announced on November 21, 2017.

The rating takes to account the stable risk profile of the fund in accordance with its Investment Policy Statement (IPS). As per policy, all issue/issuer exposures are subject to minimum rating of ‘A’ while weighted average maturity (WAM) and duration of the fund are capped at 4 years and 180 days respectively. During the period under review, the fund has largely maintained exposure in ‘A+’ (~96%) and above rated instruments. Based on the IPS and actual asset allocation, the rating will be constrained by any change in credit quality of the fund’s assets, going forward.

Net assets of the fund amounted to Rs. 1,385.4m (FY18: Rs. 1,013.3m, FY17: Rs. 1,253.8m) at end-April 2019. AUMs of the fund increased to the highest level on a year-on-year basis on account of investments by corporates and parent’s provident fund. Despite growth in fund size, top-10 investor concentration in the fund remains high while quantum of retail investments has slightly improved. Given the credit and liquidity profile of assets, ability to meet redemptions is considered sound.

For further information on this rating announcement, please contact the undersigned (Ext: 201) or Ms. Muniba Khan (Ext: 215) at 021-35311861-71 or fax to 021-35311872-3.

Javed Callea

Applicable Rating Criteria: Fund Stability (September 2018)

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 not an NRSRO and its credit ratings are not NRSRO credit ratings.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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