Press Release
VIS Reaffirms Fund Stability Rating of HBL Money Market Fund
Karachi, January 02, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Money Market Fund (HMMF) at ‘AA+ (f)’ (Double A plus (f)). The medium to long-term rating of ‘AA+ (f)’ denotes high degree of stability in Net Assets Value. Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on December 29, 2022.
HMMF is an open-end fund which offers high liquidity through investment in low risk securities of shorter duration and maturity. As at June 30, 2023, the fund registered a sizeable decline with Assets under Management (AUMs) reducing to Rs. 13.1b from Rs. 15.6b as at June 30, 2023. As per the Investment Policy Statement (IPS), WAM of the fund is capped at 90 days wherein exposures are limited to a minimum of ‘AA’ and above rated investment avenues.
During the period under review, asset allocation and credit quality of the fund remained in line with the limits stipulated in IPS for the assigned rating. On monthly average basis during FY23, the fund maintained a significant portion (74%) of its investments in ‘AAA’ rated issue/issuer, mainly comprising of T-bills. Based on annualized return as of Jun’23, the fund performance slightly lagged behind the benchmark and peer average.
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