Press Release

VIS Reaffirms Fund Stability Rating of Al Habib Cash Fund

Karachi, November 15, 2023: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) of ‘AA+(f)’ (Double A Plus (f)) to Al Habib Cash Fund (“AHCF” or “the Fund”). The medium to long-term rating of ‘AA+’ denotes high degree of stability in NAV, modest risk but may vary from time to time because of changing economic conditions. The previous rating action was announced on December 13, 2022.

The fund was launched on March 10, 2011 and is an open-ended money market fund. Ratings are underpinned by the fund’s sound credit quality, high level of stability of NAV, prudent asset allocation coupled with the fund’s liquid asset portfolio. It holds a significant portion of its assets in government securities such as Treasury Bills. This allocation to low-risk and liquid assets aligns with the fund's investment objective of providing optimum returns while maintaining high liquidity. In addition, majority of the fund is vested in AAA-rated securities, indicating a high level of creditworthiness. The fund's credit risk appetite and credit quality align with the criteria for the assigned rating.

AHCF remains dominated by retail investors contributing 66% of the total AUMs as at Jun’23. The fund limits its weighted average maturity (WAM) to 90 days to mitigate potential losses from adverse movements in the discount rate and remain in compliance during the review period. Additionally, the maturity of any individual asset must not surpass six months and therefore is compliant to the offering document. During the review period AHCF generated YTD return of ~17.3% (including dividends) against a benchmark of ~17.0% as of June’23. However, the average month-on-month return during FY23 stood at 16.1% underperforming the benchmark of 17.0%. Relative to peers, the fund was placed in the fourth quartile in the category of 24 funds.

For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 207) on 021-35311861-64 or email at info@vis.com.pk.



Sara Ahmed
Director

Applicable Rating Criteria: Fund Stability Ratings (Sep 2018)
https://docs.vis.com.pk/docs/-FundstabilityRating.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.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 November 15, 2023 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.