Press Release

VIS Upgrades Fund Stability Rating of Al Habib Cash Fund

Karachi, December 27, 2024: VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of Al Habib Cash Fund (‘AHCF’ or ‘the Fund’) to ‘AAA(f)’ (Triple A (f)) from AA+(f) (Double A Plus (f)). Medium to long-term rating of ‘AAA’ denotes highest degree of stability in Net Asset Value; risk is negligible with very low sensitivity to changing economic conditions. Previous rating action was announced on November 15, 2023.

The AHCF was launched in March 10, 2011 as an open-ended money market fund managed by Al Habib Asset Management Limited. The Fund’s primary objective is to provide its unit-holders optimum returns from a portfolio of low risk and short duration assets while maintaining high liquidity.

The rating upgrade reflects the Fund's credit quality, which aligns with VIS benchmarks for the assigned rating. Over 85% of investments of the Fund are held in government securities and AAA-rated assets, with the remainder in AA+-rated instruments, indicative of a sound credit quality. The offering document of the Fund allows for investment not below AA rating. The assigned rating also takes into account the Fund’s asset allocation strategy, consistent with the Fund's investment objectives and parameters stated in the offering document. The Fund’s portfolio is dominated by government securities, with T-Bills constituting majority of the investments.

The weighted average maturity (WAM) of the Fund has remained within the limits specified in the offering document. The liquidity profile of the Fund is considered sound with most of the investments held in government securities. During FY24, the proportion of the corporate investors to the Fund witnessed a notable increase. The retail unit holders, however, continue to represent majority of the Fund’s investments. In terms of performance, the Fund’s annualized return has outperformed its benchmark though the monthly return has remained below the expected level. The Fund was positioned in the third quartile, reflecting an improvement from the previous year.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.



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

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