Press Release

VIS Reaffirms Fund Stability Rating of HBL Islamic Money Market Fund

Karachi, January 03, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HIMMF) at ‘AA+ (f)’ (Double A plus (f)). Previous rating action was announced on December 30, 2020.

HIMMF is an open-ended Shariah Compliant fund which aims to provide investors with maximum possible return and high liquidity while ensuring capital preservation. In FY21, net assets of the fund registered a decline of ~27% and amounted to Rs. 6.6b (FY20: Rs. 8.4b). As per the Investment Policy Statement (IPS), WAM of the fund is capped at 90 days where assets may take exposure in ‘AA’ and above rated investment avenues.

During the period under review, asset allocation and credit quality of the fund remained in line with limits stipulated in investment policy guidelines for the assigned rating. On a month-on-month average analysis, the fund managed to park one-half of its investments in ‘AAA’ rated issue/issuer where the fund’s asset based primarily comprised cash placements. The fund has consistently outperformed vis-à-vis benchmark return and peer average in the outgoing fiscal year. In terms of relative ranking, the fund remained in the second quartile. Total number of investors has increased and investment by unrelated corporates constitute more than 60% of the fund size. Top-10 investors’ concentration is reported on the higher side which indicates room for improvement.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or Ms. Faryal Ahmad Faheem (Ext: 306) at 35311861-66 or email at

Saeed Khan
Executive Director

Applicable rating criteria: Fund Stability Ratings (December 2020)

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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