Press Release

VIS Reaffirms Fund Stability Rating of HBL Islamic Income Fund

Karachi, December 31, 2020: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Income Fund (HIIF) at ‘A+ (f)’ (Single A Plus (f)). The previous rating action was announced on December 30, 2019.

HIIF is a Shariah Compliant open end fund which aims to provide investors comparable returns by investing in diversified pool of debt instruments, bank deposits and other approved investment avenues. At end-June’20 During FY20 net assets under management substantially declined to 1.4b (FY19 3.1b) attributable to lesser number of units sold and higher number of units redeemed.

At end-June’20 the fund’s asset allocation plan remained concentrated in cash placements and corporate Sukuk while remaining portion of the investment portfolio consisted of Modarba holdings. Credit quality provisions as stated in the offering document restrict the fund to take exposure in A- and above rated avenues. The fund remained compliant with the credit quality criteria. As per the fund’s IPS, internal policy duration is capped at 365 days whereas WAM of the fund shall be no longer than 4 years. Modified duration and WAM of the fund remained compliant within the specified limit as per assigned ratings.

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

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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .