Press Release

JCR-VIS Assigns Fund Stability Rating of A(f) to HBL Income Fund

Karachi, June 17, 2009: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned Fund Stability Rating of A(f) (Single A (f)) to HBL Income fund (HIF).

Launched in March 2007, HIF is managed by HBL Asset Management Limited. The fund aims to provide investors a stable stream of income with a moderate level of risk by investing in fixed income instruments. While investment policy as defined under the Offering Document is very liberal, the management company has adopted a more conservative approach in managing the overall risk profile of the fund, which is guided by an internally approved policy document.

Over the past few months, the fund has restricted exposure to the NBFCs sector while also limiting exposure to highly rated banks in case of Term Deposit Receipts. Earlier, the fund could also invest in ready-future spread transactions, though given recent events on the stock market, the fund will be avoiding investment in RFS transactions that would otherwise expose the fund’s NAV to price swings. Exposure to TFCs is considerable in relation to net assets currently; having enhanced on account of reduction in net assets, though overall asset mix is proposed to be rationalized in line with unit-holder mix, going forward. More recently, the fund has also assumed short term exposure in T-bills which has improved the overall credit risk profile of the fund.

Unit holding pattern, though considerably concentrated, has shown improvement in recent months. The management company is making efforts towards mobilizing investment from the retail segment. The benefits accruing from the extensive outreach of the parent bank in terms of achieving greater degree of dispersion in unit-holding pattern would be tracked over time.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 (10 lines) or fax to 5311872-3.



Faheem Ahmad
President & CEO

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 2009 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .