Press Release

VIS Reaffirms Fund Stability Rating of HBL Cash Fund

Karachi, January 02, 2023: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of AA+(f) (Double A Plus (f)) to HBL Cash Fund (HBL-CF). FSR of ‘AA+’ signifies high degree of stability in NAV. Risk is modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 29, 2022.

HBL CF is an open-end money market fund with the objective to provide competitive returns to its investors through active investments in low risk portfolio of short duration, while maintaining high liquidity. Throughout the year, the fund experienced substantial growth, as its Assets under Management (AUMs) rose to Rs. 50.3b by Jun’23, up from Rs. 36.1b in Jun’22.

Rating is underpinned by the fund’s asset allocation and fund performance. The fund has adhered to the asset allocation guidelines set forth in the offering document. During the review period, the fund’s major holdings were placed in T-Bills and Cash while other allocations were in commercial papers, TFCs/Sukuks, PIBs, and Placements with Banks and DFIs. Rating also takes account of the fund’s credit quality wherein majority of the fund’s investments were placed in ‘AAA’ and ‘AA’ rated securities.

During FY23, Weighted Average Maturity (WAM) of the fund remained complaint and stood at 36 days. In terms of performance the fund generated a return of 17.6% in FY23 outperforming the benchmark of 16.9%. Relative to peers, the fund return was placed in the second quartile in the category of 24 funds.

For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 208) on 021-35311861-64 or email at info@vis.com.pk.



Syed Asif Ali
Executive Director

Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/docs/-FundstabilityRating.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .