Karachi: VIS Credit Rating Company Limited has assigned a Fund Stability Rating of 'AA- (f)' to the HBL Financial Sector Income Fund Plan-II. This rating suggests a high degree of stability in the Plan's Net Asset Value, though it may experience slight variations due to economic factors.

According to a statement by VIS Credit Rating Company Limited, the HBL Financial Sector Income Fund Plan-II was launched on February 19, 2024. The Plan aims to enhance income and preserve capital through investments in top-quality financial sector TFCs/Sukuks, bank deposits, and short-term money market instruments.

The rating reflects the Plan's asset quality and strategy, which align with its offering document. The portfolio is primarily composed of cash holdings, with a significant portion in AA+ rated banks. The Plan's credit exposures support its rating, and maintaining credit quality will be crucial for future stability.

The Plan's weighted average time to maturity is capped at four years, excluding government securities. The market risk remains minimal due to reliance on cash deposits. While client concentration is higher, the liquidity profile is deemed sound.