Press Release
VIS Reaffirms Fund Stability Rating of HBL Cash Fund
Karachi, January 03, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Cash Fund (HCF) at ‘AA+ (f)’ (Double A plus (f)). Previous rating action was announced on December 31, 2020.
HCF is an open-ended money market fund with the objective of offering competitive returns to investors through investments in cash and cash equivalents, sovereign instruments and money market placements. The fund registered a sizeable growth of ~50% with net asset increasing to Rs. 26.4b (FY20: Rs. 17.9b) at end-FY21. The growth momentum has continued in the ongoing fiscal year. As per the Investment Policy Statement (IPS), WAM of the fund is capped at 90 days where assets may take exposure in ‘AA’ and above rated investment avenues.
Since last review, the fund’s asset allocation and credit quality remained in line with limits stipulated in investment policy guidelines for the assigned rating. On a monthly average basis, the fund managed to park 95% of its investments in ‘AAA’ rated issue/issuer where T-bills received the highest allocation. The fund has remained in the first quartile in fund performance, outperforming its benchmark and peer average in FY21. Top-10 investors continue to constitute around three-fifth of total fund size indicating considerable room for improvement.
For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or Ms. Faryal Ahmad Faheem (Ext: 306) at 35311861-66 or email at info@vis.com.pk
Saeed Khan
Executive Director
Applicable rating criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf