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Press Release

VIS Reaffirms Fund Stability Rating of HBL Islamic Income Fund

Karachi, December 30, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Income Fund (HIIF) at ‘A+ (f)’ (Single A Plus (f)). The previous rating action was announced on December 26, 2018.

HIIF is a Shariah Compliant open end fund which aims to provide investors comparable returns by investing in diversified pool of debt instruments, bank deposits and other approved investment avenues. At end-June’19 it was observed that the fund’s size significantly declined to 3.1b imputing to higher rate of redemptions.

Asset allocation of the fund largely remained within the stipulated limits defined in the investment policy. During the review period, average asset allocation was inclined towards cash equivalents and Corporate Sukuk. The fund remained compliant with the credit quality criteria for the assigned ratings. Exposure to market risk is limited on account of lower duration. Furthermore, relative ranking of the fund deteriorated with returns reported in the third quartile (FY18: first quartile) vis-a-vis industry peers.

For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk.


Javed Callea
Advisor

Applicable Rating Criteria: Fund Stability Ratings (September 2018)
https://s3-us-west 2.amazonaws.com/backupsqlvis/docs/Fund%20stability%20Rating092018.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 30, 2019 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.