Karachi: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating of HBL Money Market Fund at 'AA+ (f)', indicating a high degree of stability in its Net Asset Value. The rating reflects a modest risk level that may slightly fluctuate due to economic conditions. The previous rating action was announced on January 2, 2024.

According to a statement by VIS Credit Rating Company Limited, HBL Money Market Fund, an open-end fund launched on July 14, 2010, has shown significant growth. During the fiscal year 2024, the Fund's Assets Under Management increased by approximately 70%. It yielded an annualized return of 21.54%, surpassing its benchmark but falling short of the peer average.

The rating considers the Fund's investment strategy, which adheres to the guidelines specified in its offering document. The Fund's portfolio primarily comprises T-Bills, cash deposits, PIB-Floaters, and placements with banks and DFIs, with minimal exposure to TFCs/Sukuks. The assessment also highlights the Fund's credit quality, primarily invested in government securities and AAA-rated assets, with the remainder in AA+-rated securities.

Although the Fund's credit exposures mostly exceeded the minimum AA rating threshold, some placements fell below the defined rating during the review period. Maintaining credit quality in accordance with set benchmarks will be crucial for the Fund's rating in the future. The weighted average time to maturity has remained in line with the offering document, and the Fund's liquidity profile is evaluated as sound. Additionally, the Fund benefits from low client concentration.