Press Release

VIS Reaffirms Fund Stability Rating of Al Habib Money Market Fund

Karachi, November 15, 2023: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) of ‘AA+(f)’ (Double A Plus (f)) to Al Habib Money Market Fund (“AHMMF” or “the Fund”). The medium to long-term rating of ‘AA+’ denotes high degree of stability in NAV, modest risk but may vary from time to time because of changing economic conditions. The previous rating action was announced on December 30, 2022.

AHMMF was launched on December 20, 2021 and is an open-ended money market fund. The fund’s primary objective is to provide its unit-holders optimum returns from a portfolio of low risk and short duration assets while being highly liquid. The fund limits its weighted average maturity (WAM) to 90 days to mitigate potential losses from adverse movements in the discount rate and it has remained compliant during the review period. Net Assets of the fund as at Jun’23 increased to Rs. 8.27b as compared to Rs.3.08b as at Jun’22.

Ratings are underpinned by the AHMMF’s asset allocation, credit quality and liquidity risk. The asset allocation in FY23 remained in line with the fund’s Investment Policy Statement (IPS). During the review period the average cash allocation has decreased while the average allocation of T-bills has increased. The fund has remained within the required limit to invest in a minimum credit quality rating of ‘AA’ or higher during the review period. AHMMF has maintained a maximum credit quality of ‘AAA’ and a minimum credit quality of ‘AA’, with majority of its investments based in Government securities. This indicates a high credit quality portfolio with low credit risk.

As of June 2023, the fund’s investments are dominated by corporates, with ~91% of the total AUMs coming from unrelated corporates. In FY23, the fund generated YTD return of ~17.3% (including dividends) against the benchmark of ~17.0% as of Jun'23. However, the average month-on-month return during FY23 stood at 16.0% underperforming the benchmark of 17.0% Relative to peers the fund has been placed in the third quartile.

For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 207) on 021-35311861-64 or email at info@vis.com.pk.



Sara Ahmed
Director

Applicable Rating Criteria: Fund Stability Ratings (Sep 2018)
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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