Press Release

VIS Upgrades Fund Stability Rating of Al Habib Money Market Fund

Karachi, December 27, 2024: VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of Al Habib Money Market Fund (‘AHMMF’ 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.

AHMMF was Launched in December, 2021 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 remaining highly liquid.

The rating upgrade reflects the Fund's credit quality, which aligns with VIS benchmarks for the assigned rating. Over 85% of investments 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 restricts investments below AA rated instruments. The assigned rating also takes into account the Fund’s asset allocation strategy, which aligns with its investment objectives and the parameters outlined in the offering document. The Fund’s portfolio primarily consists of government securities, with T-Bills representing the majority of the allocation though proportion of investments in the PIBs has increased.

The weighted average maturity (WAM) of the Fund has remained within the limits defined in the offering document. Liquidity profile of the Fund is considered sound, given majority of the investments are held in liquid securities. The Fund’s portfolio is dominated by corporate investors with high contribution from the top ten investors, giving rise to the concentration risk. In terms of performance, the Fund’s annualized return has outperformed though the monthly return has underperformed relative to the benchmarks. The Fund was placed in the third quartile relative to its peers.

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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