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Press Release

VIS Reaffirms Fund Stability Rating of HBL Money Market Fund

Karachi, December 30, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Money Market Fund (HMMF) at ‘AA (f)’ (Double A (f)). The previous rating action was announced on December 26, 2018.

HMMF is an open ended fund which offers high liquidity by investing in shorter duration securities. At end-FY19, net assets of the funds declined to Rs. 6.2b (FY18: Rs. 7.2b) on account of higher redemptions. However, the asset base of the fund recouped and increased to Rs. 9.2b at end-Nov’19. Assigned ratings take into account asset allocation in highly liquid investments and exposure in sound credit quality instruments. Moreover, during FY19 modified duration of the fund remained within the required stipulations for the assigned ratings indicating limited exposure to market risk. Maximum duration during FY18 was reported at 53 days at end-Feb’2019. The proportion of retail increased to 55% (FY18: 50%). Owing to redemptions, granularity declined and the top 10 investor concentration increased to 75% (FY18: 53%) at the end-FY19. However, given the fund objective to invest in highly liquid and low-risk instruments, liquidity of the fund is considered adequate.


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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright December 30, 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.