Press Release

JCR-VIS Reaffirms Fund Stability Rating of HBL Income Fund at A(f)

Karachi, December 30, 2011: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of HBL Income fund (HBLIF) at A(f).

Rating incorporates the depiction of moderate degree of stability in the fund’s NAV as also evident from the consistent returns posted by the fund over the 12-month period. While there have been incidences of non-performance in the fund’s portfolio, judicious provisioning policy has instated stability in the performance of the fund.

Overall credit risk on the holdings of the fund is moderate. Apart from few instances, selection of instruments has been superior, translating into manageable credit risk profile for the fund. Proceeds from maturing TFCs have been invested in government securities or maintained as cash and bank balances. Interest rate risk on holdings carried in the fund is limited as investments largely comprise floating rate/ short-term instruments pegged to market interest rates. However, the fund is exposed to price risk on its TFCs holdings attributable to low trading volumes in the secondary market of corporate debt instruments.

Investor profile continues to feature concentration. Nevertheless, the ability of the fund to meet redemptions is considered sound, as the fund has sizeable investments in government securities having strong liquidity profile; moreover, the significant holding of a related party in the outstanding units provides cushion for mitigating risk emanating from low marketability of non-government debt instruments.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sabeen Saleem, CFA (Ext: 510) at 35311861-70 (10 lines) or fax to 35311872-3.




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 2011 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .