Press Release
VIS Upgrades Fund Stability Rating of HBL Islamic Money Market Fund
Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HIMMF) to ‘AA+ (f)’ (Double A plus (f)). The previous rating action was announced on December 30, 2019.
The rating action incorporates updated FUND STBILITY RATING methodology which can be found on our website https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf for reference.
HIMMF is a Shariah compliant open end fund which is designed to provide investors with maximum possible return and high liquidity while ensuring capital preservation. During FY20 the fund witnessed tremendous growth with net assets closing at 8.4b (FY19 1.05b). The fund’s major holdings primarily comprised of cash placements. Investment Policy Statement (IPS) of the fund restricts exposure in AA or above rated securities; no breaches were witnessed throughout the year. Duration of the fund remained compliant with the rating stipulations. Top-10 investor contribution improved, investment by unrelated corporates comprised significant portion of 80% whereas portion by retail clients decreased. Moreover, given the liquidity profile of assets, ability to meet redemptions is considered sound.
For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or the undersigned (Ext: 301) at 35311861-70 or email at info@vis.com.pk
Faheem Ahmad
President & CEO
Applicable rating criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf
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