Press Release

VIS Reaffirms Fund Stability Rating of HBL Islamic Income Fund

Karachi, March 03, 2025: 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 January 02, 2024.

Launched in May 28, 2014, 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.

The assigned rating incorporates the Fund’s asset allocation, with the Assets Under Management recording a strong growth during FY24. The Fund’s investments largely aligned with the guidelines outlined in the offering document. The Fund’s exposures were predominantly held in cash and Government backed and guaranteed securities followed by placements with banks and DFIs. Assigned rating also reflects the credit quality of the Fund, with credit exposures in instruments rated A- and above, which is in line with the mandate in the offering document. The investments of the Fund were concentrated in Government Securities and AAA rated avenues, with additional allocations in AA- and AA+ rated securities.

Weighted average time to maturity (WAM) of the Fund remained within the defined limit as stated in the offering document. Liquidity profile of the Fund is supported by its quantum of liquid assets relative to its total asset allocation. Additionally, client concentration is considered low.

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

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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .