Press Release

VIS Reaffirms Fund Stability Rating of HBL Islamic Money Market Fund

Karachi, January 02, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HBL-IMMF) at ‘AA+ (f)’ (Double A plus (f)). The medium to long-term rating of ‘AA+ (f)’ denotes high degree of stability in Net Asset Value. Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on December 29, 2022.

HBL IMMF is an open-end fund which offers high liquidity, competitive return by investment in low risk Shariah Compliant securities. During the review period, the fund registered a sizeable increase in Assets under Management (AUMs) to Rs. 44.5b as at June 30, 2023 from Rs. 15.4b as at June 30, 2023. As per the Investment Policy Statement (IPS), modified duration of the fund is capped at 90 days. The fund remained compliant in this respect the period under review.

The fund's asset allocation has remained within the parameters defined in the offering document. The fund primarily invested in Cash, TFC/Sukuks and Placements with Banks and DFIs. As per the offering document the fund is limited to invest in ‘AA’ or above rated securities. The fund adhered to the investment quality requirements during the review period though there was increase in its exposure to securities rated ‘AA+’ and some decrease in investment in ‘AAA’ rated securities.

Rating is supported by the fund’s strong performance, with a total return of 17.2% in FY23, outperforming both the benchmark return of 6.2% and the peer average of 16.7%. The fund has consistently ranked among the top performers in first quartile in the peer group.

For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 208) on 021-35311861-64 or email at info@vis.com.pk.



Syed Asif Ali
Executive Director

Applicable Rating Criteria: Fund Stability Ratings
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 January 02, 2024 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.