Karachi, January 04, 2022 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Government Securities Fund (HGSF) at ‘AA (f)’ (Double A (f)). Previous rating action was announced on December 31, 2020.

HGSF is an open-ended fund with the objective of offering investment opportunities in a diversified portfolio comprising short and long term guaranteed instruments. Net assets of the funds decreased considerably in the outgoing fiscal year and amounted to Rs. 1.1b (FY20: Rs. 3.5b). Fund’s duration is capped at 365 days while exposures can only be taken in AA- and above rated investment avenues with at least 70% in sovereign instruments.

The fund complied with the credit quality requisites for the assigned ratings with sizeable investments in AAA rated instruments. Some breaches were noted in the Weighted Asset Maturity (WAM) threshold during FY21, however since the breaches were not material, reaffirmation of rating is supported. Maximum duration during the period under review stood at 393 days in July’20. Liquidity remained sound with investments majorly in liquid securities which also provided comfort against higher market risk exposure. More than four-fifth of the fund base is provided by retail investors with moderate top-10 investors’ concentration.

For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/