Press Release

VIS Reaffirms Fund Stability Rating of HBL Cash Fund

Karachi, December 30, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Cash Fund (HCF) at ‘AA (f)’ (Double A (f)). The previous rating action was announced on December 26, 2018.

HCF is an open ended money market fund designed to offer competitive returns to its investors through the deployment of its resources comprising of cash and cash equivalents, government securities and money market placements. It was observed that net assets of the fund substantially decreased to Rs. 8.8b (FY 18: Rs. 12b) at end-June’2019 due to sizeable redemptions in the outgoing year. Asset base improved at end-Nov’19 with AUM reported at Rs. 11.3b. In line with specified limits in Investment Policy Statement (IPS), the fund maintained its resources in highly-rated avenues depicting sound credit quality. Exposure to market risk has reduced with modified duration remaining well below the policy limit of 90 days as per the assigned ratings. Investor concentration in the fund has reduced on a timeline basis. Moreover, ability of the fund to meet redemptions in a timely manner is considered sound as majority of net assets are deployed in avenues having strong liquidity.


For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk.




Javed Callea
Advisor





Applicable Rating Criteria: Fund Stability Ratings (September 2018)
https://s3-us-west 2.amazonaws.com/backupsqlvis/docs/Fund%20stability%20Rating092018.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 2019 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .