Press Release

JCR-VIS Reaffirms Fund Stability Rating of HBL Government Securities Fund

Karachi, December 26, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Government Securities Fund (HGSF) at ‘A+ (f)’ (Single A Plus (f)). The previous rating action was announced on January 15, 2018.

HBL Government Securities Fund (HGSF) is an open-end fund which aims to provide its investors superior risk adjusted returns through active duration and liquidity management tools. Fund size reduced to Rs. 314m (FY17: Rs. 1.4b at end-June’2018 on account of sizeable redemptions during the period. During FY18, the fund complied with the asset allocation requirement in its investment policy whereby the fund base was invested minimum 70% in government securities on rolling quarterly average basis barring two instances. The fund’s investments have sound credit quality as evident from exposure largely in AA- and above rated instruments. Moreover, during the period under review, modified duration remained under the specified limit of 365 days as per the assigned ratings. The assigned ratings also incorporate maintenance of adequate liquidity levels as signified by a sizeable portion of assets invested in bank deposits.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 021-35311861-71 or fax to 021-35311872-3.

Jamal Abbas Zaidi

Applicable Rating Criteria: Fund Stability Ratings (September 2018)

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited VIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2018 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited