Press Release
VIS Reaffirms Fund Stability Rating of First Habib Cash Fund
Karachi, December 31, 2019: VIS Credit Rating Company Limited has reaffirmed the fund stability rating (FSR) of First Habib Cash Fund (FHCF) at ‘AA(f)’ (Double A(f)). The rating signifies high degree of stability in Net Asset Value. Risk is considered modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 24, 2018.
FHCF is structured as a money market fund; in line with its mandate, the fund’s exposure to various sources of risks has been maintained at low end of the risk spectrum. Net assets of the fund have remained stable during the period under review and amounted to Rs. 2.1b at end-November 2019. During FY19, average month-end allocation to government paper was recorded at over 40%, though at end-June 2019, exposure in the same was much lower at 5.5%. Remaining exposures were maintained with highly rated counterparties, in line with the investment policy, which stipulates minimum issue/issuer rating of ‘AA’. Weighted average maturity of the fund’s assets has varied over the last year, while remaining within maximum policy limit. Investor concentration remains high; short maturity profile and quality of assets mitigates the associated liquidity risk.
For further information on this rating announcement, please contact Mr. Jamal Abbas Zaidi (Ext: 207) or Ms. Muniba Abdullah, CFA (Ext: 215) at 021- 35311861-66 or email at info@vis.com.pk.
Atiq Anwar Mahmudi
Advisor
Applicable Rating Criteria: Fund Stability Ratings (September, 2018)
http://vis.com.pk/kc-meth.aspx