Karachi, December 29, 2022 (PPI-OT): VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Income Fund (HIF) at ‘A+ (f)’ (Single A plus (f)). The medium to long-term rating of ‘A+ (f)’ denotes moderate degree of stability in NAV. Risk factors may vary with possible changes in the economy. Previous rating action was announced on January 03, 2022.

HIF is an open ended fund which aims to provide a stable stream of income while maintaining a moderate level of risk. Assets under Management (AUMs) of the funds increased significantly to Rs. 4.2b (Jun’21: Rs. 2.3b) as of Jun’22. As per Investment Policy Statement (IPS), fund’s duration is capped at 365 days while exposures are limited to minimum of ‘A-’ or above rated investment avenues.

The fund complied with the credit quality requisites for the assigned rating with sizeable exposures taken in cash transaction during the year. Since last review, both Weighted Asset Maturity (WAM) and modified duration have remained compliant within the specified limit as per assigned ratings. In FY22, the fund’s AUMs primarily remained concentrated in cash and corporate TFCs/ Sukuks on a monthly average basis followed by T-Bills, PIBs and spread transactions.

Baring 4 months in the outgoing fiscal year, the fund has under-performed compared to its benchmark rate. However, based on 365 days return as of Jun’22, the fund’s return compares favourably to peers. Around half of the fund base is provided by retail investors; nonetheless, top-10 investors’ concentration depicts room for improvement.

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/