Press Release
VIS Upgrades Fund Stability Rating of HBL Income Fund
Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of HBL Income Fund (HIF) to ‘A+ (f)’ (Single A plus (f)) from ‘A (f)’ (Single A (f)). The previous rating action was announced on December 30, 2019.
The rating action incorporates updated FUND STBILITY RATING methodology which can be found on our website https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf for reference.
HIF is an open ended fund which aims to provide a stable stream of income while maintaining a moderate level of risk. During FY20 the fund size remained stagnant at Rs. 1.5b (FY19 Rs. 1.5b) at end-June’20. During FY20, the fund’s asset allocation plan remained concentrated in cash balances, PIBs and corporate TFCs. Credit quality has largely been compliant with approved investment limits of the IPS. On an average, the fund parked around 30% of its assets in ‘AA-’ and 33% AAA rated avenues with the remaining exposure being in line with the stipulations of the assigned ratings. Weighted Average Time to Maturity (WATM) and duration remained within the specified limits as per the operational investment policy.
For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 301) at 35311861-70 or email at info@vis.com.pk
Faheem Ahmad
President & CEO
Applicable rating criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf