Press Release

VIS Reaffirms Fund Stability Rating of HBL Islamic Income Fund

Karachi, January 03, 2022: 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)). Previous rating action was announced on December 31, 2020.

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. Net assets of the funds decreased to Rs. 969m (FY20: Rs. 1.4b) at end-FY21. As per Investment Policy Statement (IPS), fund’s duration is capped at 365 days while exposures can only be taken in ‘A-’and above rated investment avenues.

The fund complied with the credit quality requisites for the assigned ratings. More than 90% of the fund’s net assets is concentrated in cash placements and corporate TFCs/ Sukuks. Since last review, both Weighted Asset Maturity (WAM) and modified duration have remained compliant within the specified limit as per assigned ratings. Baring two months in the outgoing fiscal year, the fund has outperformed vis-à-vis its benchmark return rate. However, relative ranking has depicted a decline and the fund remains in the fourth quartile. Around three-fifth of the fund base is provided by retail investors while top-10 investors’ concentration is considered moderate.

For further information on this rating announcement, please contact Mr. Muhammad Tabish (Ext: 204) or Ms. Faryal Ahmad Faheem (Ext: 306) at 35311861-66 or email at info@vis.com.pk





Saeed Khan
Executive Director

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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .