Karachi: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating of the HBL Islamic Money Market Fund at 'AA+ (f)', indicating a high degree of stability in the fund's net asset value. This rating reflects the modest risk associated with the fund, which may experience slight fluctuations due to varying economic conditions. The previous rating action was issued on January 2, 2024.

According to a statement by VIS Credit Rating Company Limited, the HBL Islamic Money Market Fund, launched on May 10, 2011, is an open-end fund designed to provide high liquidity and competitive returns through investments in low-risk, Shariah-compliant securities. The fund's asset allocation aligns with the parameters outlined in its offering document.

The rating considers the fund's allocation primarily to bank and DFI placements, as well as investments in GOP Ijarah Sukuk and TFCs/Sukuks. The credit quality of the fund has been predominantly maintained in AA and above-rated credit exposures. The largest allocation has been to government securities and AAA-rated assets, although a minor deviation was noted in one month, highlighting the need for consistent adherence to rating benchmarks.

The fund's weighted average time to maturity has consistently remained within the defined threshold specified in the offering document. The liquidity profile is bolstered by a higher proportion of liquid assets, further supporting the fund's stability.