JCR-VIS reaffirms Fund Stability Rating of Habib Bank Limited Money Market Fund

Karachi, December 26, 2014 (PPI-OT): JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Money Market Fund (HBLMMF) at ‘AA(f)’ (Double A (f)). The previous rating action was announced on October 21, 2013.

The fund’s rating reflects high degree of stability in Net Asset Value. The assigned rating takes into account the conservative policy of the fund that bars investment in any issue/issuer having rating below ‘AA’; in case of placements with NBFCs/ modaraba, only ‘AAA’ rated entities are eligible counterparties. In addition, Weighted Average Maturity of the fund is capped at 90 days whilst investment in any instrument maturing beyond 6 months is not allowed.

Actual exposure to credit and market risk has remained in line with investment guidelines with average allocation to Treasury Bills comprising more than three-quarters of the fund’s assets in FY14; WAM was reported at 86 days at end-November 2014.

Size of the fund has showcased decline in the out-going year; management attributes the same to changes in regulatory framework pertaining to income from mutual funds. Accordingly, unit holder concentration has witnessed an uptick. Large investors primarily include corporate entities from various sectors whilst retail holding in the fund is around 10%. Given the highly liquid nature of underlying assets, the fund’s ability to meet redemptions is considered sound.

For more information, contact:
Ms. Sobia Maqbool
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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