Karachi, January 04, 2022 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HIMMF) at ‘AA+ (f)’ (Double A plus (f)). Previous rating action was announced on December 30, 2020.

HIMMF is an open-ended Shariah Compliant fund which aims to provide investors with maximum possible return and high liquidity while ensuring capital preservation. In FY21, net assets of the fund registered a decline of ~27% and amounted to Rs. 6.6b (FY20: Rs. 8.4b). As per the Investment Policy Statement (IPS), WAM of the fund is capped at 90 days where assets may take exposure in ‘AA’ and above rated investment avenues.

During the period under review, asset allocation and credit quality of the fund remained in line with limits stipulated in investment policy guidelines for the assigned rating. On a month-on-month average analysis, the fund managed to park one-half of its investments in ‘AAA’ rated issue/issuer where the fund’s asset based primarily comprised cash placements. The fund has consistently outperformed vis-à-vis benchmark return and peer average in the outgoing fiscal year. In terms of relative ranking, the fund remained in the second quartile. Total number of investors has increased and investment by unrelated corporates constitute more than 60% of the fund size. Top-10 investors’ concentration is reported on the higher side which indicates 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/