Press Release

JCR-VIS Reaffirms Fund Stability Rating of HBL Income Fund

Karachi, January 14, 2016: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of HBL Income Fund (HBL IF) at ‘A(f)’ (Single A(f)). The previous rating action was announced on March 13, 2015.

As per the operational investment policy, the fund is required to maintain at least a quarter of the fund’s assets in form of cash or cash equivalent. Exposure to PIBs is capped at 50% while investment to corporate bonds is to be maintained within a range of 15%-40%. Credit risk exposures can be taken in investment grade instruments, indicating capacity to assume sizable credit risk.

Asset allocation of the fund remained inclined towards sovereign instruments which comprised more than 70% of fund’s assets during FY15. Weighted Average Maturity of the fund was reported at around 1.7 years during FY15 while average duration stood at less than 100 days. Month-on-month return of the fund depicted volatility attributable to changes in benchmark rate and the resultant impact on asset valuations.

For further information on this rating announcement, please contact the undersigned (Ext: 517) or Mr. Javed Callea (Ext: 501) at 35311861-70 (10 lines) or fax to 35311873.


Jamal Abbas Zaidi
Advisor

Applicable Rating Criteria: Fund Stability Ratings (February 2012)
http://www.jcrvis.com.pk/Images/FSRMeth-201202.pdf

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 2016 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .