Press Release
VIS Reaffirms Fund Stability Rating of HBL Islamic Money Market Fund
Karachi, December 29, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HIMMF) at ‘AA+ (f)’ (Double A plus (f)). The medium to long-term rating of ‘AA+ (f)’ denotes high degree of stability on NAV. Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on January 03, 2022.
HIMMF is an open-ended Shariah Compliant fund which aims to provide investors with maximum possible return and high liquidity while ensuring capital preservation. As at Jun’22, Assets under Management (AUMs) of the fund registered a growth of 133% and amounted to Rs. 15.4 (Jun’21: Rs. 6.6b). As per the Investment Policy Statement (IPS), WAM of the fund is capped at 90 days and exposures are limited to minimum of ‘AA’ and above rated investment avenues.
During the period under review, asset allocation and credit quality of the fund remained in line with limits stipulated in IPS. However, VIS credit risk criteria for the assigned rating limits exposure in 'AA' rated instruments to 25% or less, wherein deviation was noted on few occasions. As per MoM analysis of the fund during FY22, the fund managed to park half of its investments in ‘AAA’ rated issue/issuer where the fund’s asset base primarily comprised cash placements. The fund has consistently outperformed benchmark return and peer average in the outgoing fiscal year. In terms of relative ranking, the fund’s return stood in the first quartile. Investor concentration remained on the higher side depicting room for improvement.
For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA (Ext: 215) or the undersigned (Ext: 207) at 35311861-70 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