Karachi, VIS Credit Ratings Company Ltd. (VIS) has reaffirmed the Fund Stability Rating (FSR) of ‘AA+(f)’ for Al Habib Cash Fund (AHCF). This rating reflects a high degree of stability in the fund’s Net Asset Value (NAV), with modest risk that may fluctuate due to economic changes.
According to VIS Credit Rating Company Limited, the AHCF, an open-ended money market fund launched in March 2011, demonstrates sound credit quality and NAV stability. The fund's significant investment in low-risk government securities, like Treasury Bills, supports its objective of optimizing returns while ensuring high liquidity. The majority of the fund's assets are in AAA-rated securities, indicative of strong creditworthiness. AHCF's investment approach aligns with its rating criteria, focusing on credit risk management and quality.
Retail investors dominate the fund, contributing 66% of its total Assets Under Management (AUM) as of June 2023. The fund maintains a weighted average maturity (WAM) of 90 days to minimize losses from interest rate fluctuations, adhering to its offering document. AHCF's year-to-date return, including dividends, was around 17.3%, closely aligned with its benchmark of approximately 17.0% as of June 2023. However, its average monthly return in FY23 was 16.1%, slightly underperforming against the benchmark. Relative to its peers, AHCF ranked in the fourth quartile among 24 funds in its category.