Press Release

VIS Reaffirms Fund Stability Rating of HBL Income Fund

Karachi, January 02, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Income Fund (HIF) at ‘A+ (f)’ (Single A plus (f)). The medium to long-term rating of ‘A+ (f)’ denotes moderate degree of stability in Net Asset Value. Risk factors may vary with possible changes in the economy. Previous rating action was announced on December 29, 2022.

HIF is an open end fund which aims to provide a stable stream of income while maintaining a moderate level of risk. Assets under Management (AUMs) of the funds almost halved to Rs. 2.1b (Jun’22: Rs. 4.2b) as of Jun’23. As per Investment Policy Statement (IPS), fund’s duration is capped at 365 days while exposures are limited to minimum of A- or above rated investment avenues.

The fund complied with the credit quality requisites of IPS with sizeable exposures taken in cash transaction and TFCs/ Sukuk during the year. Since last review, both Weighted Asset Maturity (WAM) and modified duration have remained compliant within the specified limit as per IPS. During FY23, the fund under-performed in terms of generating lower return compared to the benchmark rate though its performance in this respect remained above its peers.

For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 208) on 021-35311861-64 or email at info@vis.com.pk.



Syed Asif Ali
Executive Director

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

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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .