Karachi, January 04, 2022 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Income Fund (HIIF) at ‘A+ (f)’ (Single A Plus (f)). Previous rating action was announced on December 31, 2020.

HIIF is a Shariah Compliant open-end fund which aims to provide investors comparable returns by investing in diversified pool of debt instruments, bank deposits and other approved investment avenues. Net assets of the funds decreased to Rs. 969m (FY20: Rs. 1.4b) at end-FY21. As per Investment Policy Statement (IPS), fund’s duration is capped at 365 days while exposures can only be taken in ‘A-’and above rated investment avenues.

The fund complied with the credit quality requisites for the assigned ratings. More than 90% of the fund’s net assets is concentrated in cash placements and corporate TFCs/ Sukuks. Since last review, both Weighted Asset Maturity (WAM) and modified duration have remained compliant within the specified limit as per assigned ratings. Baring two months in the outgoing fiscal year, the fund has outperformed vis-à-vis its benchmark return rate. However, relative ranking has depicted a decline and the fund remains in the fourth quartile. Around three-fifth of the fund base is provided by retail investors while top-10 investors’ concentration is considered moderate.

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/