Press Release

JCR-VIS Reaffirms Fund Stability Rating of HBL Islamic Income Fund

Karachi, December 26, 2018: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of HBL Islamic Income Fund (HIIF) at ‘A+ (f)’ (Single A Plus (f)). The previous rating action was announced on December 29, 2017.

HIIF is a Shariah Compliant open end fund which aims to provide investors comparable returns by investing in diversified pool of debt instruments, bank deposits and other approved investment avenues. As at end-June’2018, net assets of the fund slightly declined to Rs. 4b (FY17: Rs. 4.4b).

Asset allocation of the fund largely remained within the stipulated limits defined in the investment policy. During the review period, average asset allocation was inclined towards bank deposits and Corporate Sukuk. While some deviations from credit quality criteria for the assigned ratings have been noted, reaffirmation of rating incorporates commitment of the management to comply with the same, going forward. Exposure to market risk has declined on account of lower duration. Furthermore, relative ranking of the fund improved with returns reported in the first quartile (FY17: second quartile) vis-a-vis industry peers.

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 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