Press Release
VIS Reaffirms Fund Stability Rating of HBL Government Securities Fund
Karachi, December 30, 2019: VIS Credit Rating Company Limited (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 December 26, 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. Net assets of the fund registered enormous growth to Rs. 2.1b (FY18: 0.3b) at end-FY19 due to higher sales. Likewise, net assets sustained a growing trend to Rs. 3.1b at end-Nov’19. The offering document (OD) of the fund restricts exposure in government securities and AA- rated or above, with at least 70% in sovereign instruments & remaining in cash, bank deposits, Sukuk and commercial papers. During FY19, the fund complied with the asset allocation requirement in its investment policy whereby the fund base was invested minimum 70% in government securities based on monthly average basis. 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 Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk.
Javed Callea
Advisor
Applicable Rating Criteria: Fund Stability Ratings (September 2018)
https://s3-us-west 2.amazonaws.com/backupsqlvis/docs/Fund%20stability%20Rating092018.pdf