Press Release

VIS Reaffirms Fund Stability Rating of HBL Islamic Income Fund

Karachi, January 02, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Income Fund (HBL-IIF) at ‘A+ (f)’ (Single A plus (f)). The medium to long-term rating of ‘A+ (f)’ denotes moderate degree of stability in Net Asset Value. Risk factors may vary with possible changes in the economy. Previous rating action was announced on December 29, 2022.

HBL IIF is an open end fund which aims to provide competitive risk adjusted returns to its investors by investing in a diversified portfolio of long, medium and short-term Shariah compliant debt instruments while taking into account liquidity considerations. Assets under Management (AUMs) of the fund have increased significantly to Rs. 7.6b as at June 30, 2023 from Rs. 4.6b as at June 30, 2022. As per Investment Policy Statement (IPS), fund’s duration is capped at 365 days while exposures are limited to minimum of ‘A-’ or above rated investment avenues.

The fund complied with the credit quality requisites as defined in the offering document, with holdings primarily in AAA (including government securities), AA+, AA, and A rated securities. Since last review, both Weighted Asset Maturity (WAM) and modified duration have remained compliant within the specified limit as per offering document.

The fund has demonstrated a strong performance, generated a return of 17.6% in FY23 outperforming both the benchmark return of 6.1% and the peer average of 15.8%. With respect to return on investments, the fund continues to be placed in the first quartile among a total of 23 funds in this category.

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.