Press Release
VIS Reaffirms Fund Stability Rating of HBL Income Fund
Karachi, January 02, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Income Fund (HIF) at ‘A+ (f)’ (Single A plus (f)). The medium to long-term rating of ‘A+ (f)’ denotes moderate degree of stability in Net Asset Value. Risk factors may vary with possible changes in the economy. Previous rating action was announced on December 29, 2022.
HIF is an open end fund which aims to provide a stable stream of income while maintaining a moderate level of risk. Assets under Management (AUMs) of the funds almost halved to Rs. 2.1b (Jun’22: Rs. 4.2b) as of Jun’23. As per Investment Policy Statement (IPS), fund’s duration is capped at 365 days while exposures are limited to minimum of A- or above rated investment avenues.
The fund complied with the credit quality requisites of IPS with sizeable exposures taken in cash transaction and TFCs/ Sukuk during the year. Since last review, both Weighted Asset Maturity (WAM) and modified duration have remained compliant within the specified limit as per IPS. During FY23, the fund under-performed in terms of generating lower return compared to the benchmark rate though its performance in this respect remained above its peers.
For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 208) on 021-35311861-64 or email at info@vis.com.pk.
Syed Asif Ali
Executive Director
Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/docs/-FundstabilityRating.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf