Press Release

VIS Reaffirms Fund Stability Rating of HBL Cash Fund

Karachi, December 29, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Cash Fund (HCF) at ‘AA+ (f)’ (Double A plus (f)). The medium to long-term rating of ‘AA+ (f)’ denotes high degree of stability on NAV. Risk is modest but may vary slightly from time to time because of changing economic conditions. Previous rating action was announced on January 03, 2022.
HCF is an open-ended money market fund with the objective of offering competitive returns to investors through investments in cash and cash equivalents, sovereign instruments and money market placements. During the year, the fund registered a sizeable growth with Asset under Management (AUMs) increasing to Rs. 36.1b (Jun’21: Rs. 26.4b) as of Jun’22. As per the Investment Policy Statement (IPS), Weighted Average Maturity (WAM) of the fund is capped at 90 days where assets may take exposure in ‘AA’ and above rated investment avenues.
Since last review, the fund’s asset allocation and credit quality remained in line with limits stipulated in investment policy guidelines for the assigned rating. On a monthly average basis, the fund maintained 67% of its AUMs in ‘AAA’ rated issue/issuer placements. The fund has remained in the first quartile in fund performance, outperforming its benchmark and peer average in FY22. AUMs held by un-related corporate remains sizeable at 83% as of Jun’22. Top-10 investor concentration depicts room for improvement.
For further information on this rating announcement, please contact Mr. Arsal Ayub, CFA (Ext: 215) or the undersigned (Ext: 207) at 35311861-70 or email at info@vis.com.pk




Sara Ahmed
Director


Applicable rating criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf

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