Press Release

VIS Assigns Initial Fund Stability Rating to HBL Financial Sector Income Fund Plan-I

Karachi, March 03, 2025: VIS Credit Rating Company Limited (VIS) has assigned the Fund Stability Rating (FSR) of ‘A+ (f)’ (Single A plus (f)) to HBL Financial Sector Income Fund Plan-I (‘HBL-FSIFP-I’ or ‘the Plan’). The medium to long-term rating of ‘A+ (f)’ indicates moderate degree of stability in Net Assets Value. Risk factors may vary with possible changes in the economy.

HBL-FSIFP-I was launched on January 18, 2022, with the objective to provide income enhancement and preservation of capital by investing in prime quality financial sector TFCs/Sukuks, bank deposits, and short-term money market instruments.

The assigned rating reflects the Plan’s credit quality and asset allocation strategy. During FY24, the asset allocation remained aligned with the mandate outlined in the offering document, with the majority of investments held in cash. The remaining assets were allocated to placements with banks and DFIs, government-backed securities, MTS/spread transactions, and TFC/Sukuks.

The rating also considers the Plan’s credit quality, with investments consistently maintained in assets rated above ‘A,’ as stipulated in the investment policy. The weighted average time to maturity (WAM) is capped at four years per the Plan’s IPS, and during FY24, the average WAM stood at 258 days, well within the defined threshold, indicating prudent duration management. The Plan’s liquidity profile is sound, with a significant portion of investments held in liquid assets. Client concentration is assessed as moderate. In terms of performance, the Plan’s annualized return outperformed its benchmark.

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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