Press Release

JCR-VIS Reaffirms Fund Stability Rating of HBL Islamic Money Market Fund

Karachi, December 29, 2017: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HBL IMMF) at ‘AA(f)’ (Double A(f)). The previous rating action was announced on January 5, 2017.

HBL IMMF is a Shari’ah compliant money market fund with its operational investment policy and asset allocation reflecting low exposure to credit and market risk. Asset allocation of HBL IMMF did not undergo any substantial change over FY17. The fund continued to park most of its resources in saving accounts. Complying with the requirement, excess liquidity was maintained, nonetheless, restraining returns. The fund is allowed to invest in issuer/issue with a minimum credit rating of ‘AA’. In compliance with the requirements, on average, majority of the funds were invested in ‘AA+’ rated issue/issuer. Given liquidity of investments, Weighted Average time to Maturity (WAM) remained within the allowed limit. Moreover with higher retail investments, granularity in the fund improved; nonetheless, still remaining on the lower side. However, given the liquidity profile of assets, ability to meet redemptions is considered sound.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 021-35311861-71 or fax to 021-35311872-3.

Jamal Abbas Zaidi
Advisor

Applicable Rating Criteria: Fund Stability Ratings (February 2012)
http://jcrvis.com.pk/Images/FSRMeth-201202.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 December 29, 2017 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.