Karachi: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Income Fund at 'A+ (f)', indicating a moderate degree of stability in its Net Asset Value. The announcement highlights the fund's resilience amidst fluctuating economic conditions.

According to a statement by VIS Credit Rating Company Limited, the reaffirmation comes after a previous rating action in January 2024. The HBL Islamic Income Fund, launched in May 2014, is an open-end fund designed to provide competitive risk-adjusted returns through investments in a diversified portfolio of Shariah-compliant debt instruments.

The rating reflects the fund's asset allocation strategy and growth in Assets Under Management during the fiscal year 2024. Investments have been primarily in cash and government-backed securities, with placements also in banks and Development Finance Institutions.

The fund's credit quality aligns with its offering document, focusing on instruments rated A- and above, with significant investments in government securities and AAA-rated avenues. Additional allocations include AA- and AA+ rated securities.

The weighted average time to maturity of the fund remains within defined limits, supporting its liquidity profile. The fund maintains a low client concentration, further reinforcing its stability amid economic challenges.