Karachi: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Government Securities Fund at AA-(f), indicating a high degree of stability in its Net Asset Value. While the risk is modest, it may fluctuate slightly due to changing economic conditions. The previous rating was announced in January 2024.

According to a statement by VIS Credit Rating Company Limited, the HBL Government Securities Fund, launched in July 2010, is an open-end fund aimed at providing consistent returns through investments in government-backed securities. The fund's asset allocation strategy aligns with the guidelines outlined in its offering document, focusing on short, medium, and long-term government securities.

The fund's portfolio primarily comprises government securities and AAA-rated instruments, consistent with VIS benchmarks. However, there were limited investments in A-rated avenues observed over a two-month period. Maintaining credit quality in line with rating benchmarks will be crucial for the fund's future rating.

Despite a higher client concentration, the fund's liquidity profile is supported by a significant amount of liquid assets. The weighted average time to maturity of the fund remains within the defined threshold.