KARACHI:VIS Credit Rating Company Limited has assigned initial Fund Stability Rating of Faysal Islamic Cash Fund (FICF) at double A (f)).
Launched in August 2020, FICF is an open end money market fund, managed by Faysal Asset Management. The fund’s objective is to seek maximum possible preservation of capital and a reasonable rate of return via investing primarily in Shariah Compliant money market securities, said release on Thursday.
Assigned rating takes into account the fund’s liquid asset allocation and sound credit quality, with sizeable exposures limited to AA and above rated counterparties, in line with Investment Policy Statement. The fund managed to place over 81% of its assets on an average in cash placements during fiscal year 2020-21 while 87% of the portfolio remained vested in AA rated issue/issuer.
Market risk also remains low with funds investment policy limiting exposures in shorter tenors of less than 90 days.