Press Release
JCR-VIS Reaffirms Fund Stability Rating of HBL Government Securities Fund
Karachi, December 26, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Government Securities Fund (HGSF) at ‘A+ (f)’ (Single A Plus (f)). The previous rating action was announced on January 15, 2018.
HBL Government Securities Fund (HGSF) is an open-end fund which aims to provide its investors superior risk adjusted returns through active duration and liquidity management tools. Fund size reduced to Rs. 314m (FY17: Rs. 1.4b at end-June’2018 on account of sizeable redemptions during the period. During FY18, the fund complied with the asset allocation requirement in its investment policy whereby the fund base was invested minimum 70% in government securities on rolling quarterly average basis barring two instances. The fund’s investments have sound credit quality as evident from exposure largely in AA- and above rated instruments. Moreover, during the period under review, modified duration remained under the specified limit of 365 days as per the assigned ratings. The assigned ratings also incorporate maintenance of adequate liquidity levels as signified by a sizeable portion of assets invested in bank deposits.
For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 021-35311861-71 or fax to 021-35311872-3.
Jamal Abbas Zaidi
Advisor
Applicable Rating Criteria: Fund Stability Ratings (September 2018)
http://jcrvis.com.pk/docs/Fund%20stability%20Rating092018.pdf