JCR-VIS Reaffirms Fund Stability Rating of HBL Islamic Money Market Fund

Karachi, December 29, 2017 (PPI-OT):JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Money Market Fund (HBL IMMF) at ‘AA(f)’ (Double A(f)). The previous rating action was announced on January 5, 2017.

HBL IMMF is a Shari’ah compliant money market fund with its operational investment policy and asset allocation reflecting low exposure to credit and market risk. Asset allocation of HBL IMMF did not undergo any substantial change over FY17. The fund continued to park most of its resources in saving accounts. Complying with the requirement, excess liquidity was maintained, nonetheless, restraining returns. The fund is allowed to invest in issuer/issue with a minimum credit rating of ‘AA’.

In compliance with the requirements, on average, majority of the funds were invested in ‘AA+’ rated issue/issuer. Given liquidity of investments, Weighted Average time to Maturity (WAM) remained within the allowed limit. Moreover with higher retail investments, granularity in the fund improved; nonetheless, still remaining on the lower side. However, given the liquidity profile of assets, ability to meet redemptions is considered sound.

For more information, contact:
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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