Press Release
JCR-VIS Reaffirms Fund Stability Rating of HBL Islamic Money Market Fund at AA(f)
Karachi, January 01, 2013: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HBL IMMF) at ‘AA(f)’ (Double A (f)).
Investments of the fund have largely been in cash and bank balances over its life. Exposure was built in commercial paper/Sukuk of power sector companies in FY12; with maximum exposure of around 10% on a month-end basis. Credit risk profile of exposures undertaken by the fund is considered low and has remained in line with regulatory guidelines for money market funds which stipulate credit rating of at least ‘AA’ for all exposures taken by the fund. At end-Nov’12, around 99% of total assets were held as cash and bank balances with a ‘AAA’ rated institution.
Exposure of the fund to profit rate risk is also considered low. Weighted average time to maturity of the fund’s assets at end-Nov’12 was 1 day; moreover, during the year, based on month-end information, the fund maintained weighted average maturity of assets within the 90 day limit, established by way of regulations and the investment policy of the fund. Ability of the fund to meet redemptions is backed by strong liquidity profile of its holdings. In view of this, overall risk profile of the fund is deemed low.
For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) at 35311861-70 (10 lines) or fax to 35311872-3.
Jamal Abbas Zaidi
Deputy CEO