Karachi: VIS Credit Rating Company Limited has announced the assignment of a Fund Stability Rating of 'AA (f)' to the HBL Mehfooz Munafa Fund Plan-III. This rating indicates a high level of stability in the fund's Net Assets Value, though it acknowledges that risk may fluctuate slightly due to economic conditions.

According to a statement by VIS Credit Rating Company Limited, HBL Mehfooz Munafa Fund Plan-III was initiated on July 10, 2024, with the goal of providing competitive returns through investments in low-risk, short-duration portfolios while maintaining high liquidity. The fund aims to enhance returns by efficiently utilizing investment and liquidity management strategies.

The rating reflects the asset allocation and credit quality outlined in the plan's Offering document. Since its launch, the fund has seen its Assets Under Management grow to Rs. 1.5 billion by the end of October 2024. The majority of investments have been directed into Government T-Bills, signifying high credit quality. However, the plan permits exposures up to AA-rated securities, which has influenced the assigned rating. Maintaining credit quality will be crucial for preserving this rating.

The plan is structured with a fixed rate, allowing for a weighted average maturity of nine months as per the Offering document, a guideline it has adhered to thus far. The fund's liquidity profile is bolstered by a significant proportion of liquid asset allocation.