Press Release
VIS Reaffirms Fund Stability Rating of AL Habib Cash Fund
Karachi, December 13, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of AL Habib Cash Fund (Formerly First Habib Cash Fund) at ‘AA+ (f)’ (Double A Plus (f)). The previous rating action was announced on December 28, 2021.
AHCF is a money market fund with an objective to provide its investors competitive returns while maintaining high liquidity by deploying assets in short-term low risk debt instruments. The fund’s exposure as per their Investment Policy Statement is limited to minimum ‘AA’ rated or higher debt issue/issuer exposures.
Assigned rating incorporates size of the fund which has surged to Rs.22.9b (FY21: 16.9b) at end-FY22 coupled with fund’s liquid asset allocation plan and sound credit quality. In order to cater to its mandate, the fund managed to preserve the asset allocation in allowable securities, with no deviations in the actual asset allocation. The fund’s asset allocation and credit quality remained in line with limits as stipulated in the Investment Policy Strategy (IPS). On an average basis, the fund managed to park 69% of investments in ‘AAA’ rate issue/issuer where T-bills attained the highest allocation. The fund performance falls in the fourth quartile, underperforming its peer average, however, outperforming its benchmark rate.
For further information on this rating announcement, please contact Mr. Shaheryar Khan (Ext: 209) or the undersigned (Ext: 207) at (021) 35311861-66 or email at info@vis.com.pk.
Sara Ahmed
Director
Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf)