Press Release
JCR-VIS reaffirms Fund Stability Rating of HBL Income Fund at A(f)
Karachi, April 1, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of HBL Income fund (HIF) at ‘A(f)’ (Single A (f)).
Managed by HBL Asset Management Limited, HIF aims to provide investors a stable stream of income with a moderate level of risk by investing in fixed income instruments. Net assets of the fund stood lower at Rs. 1.64b at December-09 end. Targeted asset allocation of the fund envisages 35% exposure in TFCs/Sukuks, while the remaining assets may be deployed in money market instruments. Actual exposure to TFCs is much higher on account of decrease in fund size due to redemptions faced by the fund, which has also caused asset allocation to vary over time. The fund has also assumed some exposure in government paper, which is mostly short term.
The fund reported return of about 14% (annualized) for HY2010. Total non performing assets stood at about 2% of net assets at December 31, 2009. The impact on returns on account of provisioning against non-performing assets is not expected to be significant. The fund is expected to maintain moderate degree of stability in NAV over a medium to long term horizon.
Unit holding pattern of the fund features considerable concentration, though risk of withdrawal from the larger investors, which are related parties, is considered low. JCR-VIS will continue to track the management’s efforts towards diversifying the investor base.
For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 021-35311861-70 (10 lines) or fax to 021-35311872-3.
Safdar Kazi
Director