Karachi: VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating of HBL Cash Fund at AA+(f), indicating a high degree of stability in the net asset value. This reaffirmation suggests that while the risk is modest, it may experience slight variations due to changing economic conditions. The previous rating action was announced on January 2, 2024.

According to a statement by VIS Credit Rating Company Limited, HBL Cash Fund was launched on December 13, 2010, as an open-end money market fund. Its primary objective is to offer competitive returns to investors through active investments in a low-risk portfolio of short duration, while ensuring high liquidity.

The rating reflects the Fund's asset allocation, which is aligned with the stipulations in its offering document. The Fund's investments are primarily concentrated in T-Bills, Cash, PIB-Floater, and placements with banks and DFIs, with minimal exposure to GOP Ijarah. The credit quality of the Fund's investments adheres to the guidelines in the offering document, with a predominant allocation to Government Securities and AAA-rated avenues.

The weighted average time to maturity of the Fund remains within the defined threshold as per the offering document. The Fund's liquidity profile is bolstered by the significant portion of investments in liquid assets. Client concentration is considered manageable.