Press Release

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

Karachi, December 26, 2014: 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 & 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 further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.

Jamal Abbas Zaidi
Deputy CEO

Applicable Rating Criteria: Fund Stability Ratings (February 2012)

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2014 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited