Press Release
VIS Upgrades Fund Stability Rating of HBL Government Securities Fund
Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of HBL Government Securities Fund (HGSF) to ‘AA (f)’ (Double A (f)) from ‘A + (f)) (Single A plus (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.
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 grew during the year amounting to 3.5b (FY19 2.1b) 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 balances, Sukuk and commercial papers. During FY20, the fund managed to preserve 70% of its assets in PIBs and T-bills on a month-on-month average basis. Complying with the specified limits stated in Investment Policy Statement (IPS) for the assigned ratings. The fund substantially managed to preserve its resources in AA or above rated instruments. Moreover, WAM of the fund complied for the assigned ratings.
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