Press Release

VIS Upgrades Fund Stability Rating of HBL Cash Fund

Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of HBL Cash Fund (HCF) to ‘AA+ (f)’ (Double A plus (f)) from ‘AA (f)’ (Double A (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.
HCF is an open ended money market fund designed to offer competitive returns to its investors through the deployment of its resources comprising of cash and cash equivalents, government securities and money market placements. For the period under review the fund witnessed a multifold growth as net assets stood at 17.9b end-June’20 (FY19 8.8b) Assets under management mainly comprised of cash and T-bills, remaining investments were placed in commercial paper and other authorized avenues. Actual asset allocation and credit quality complied with the specified standards of the offering document. Exposure to market risk has been maintained with modified duration remaining well below the policy limit of 90 days as per the assigned ratings. Top-10 investor concentration in the fund has significantly improved during the year. Owing to the fund’s liquid asset mix, the fund’s ability to meet redemptions is considered sound.

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

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 31, 2020 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.