VIS Reaffirms Fund Stability Rating of HBL Money Market Fund

Strategic Insights -

VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Money Market Fund (HMMF) at 'AA+ (f)' (Double A plus (f)). The fund continues to offer high liquidity through investments in low-risk securities of shorter duration and maturity. At the end of FY21, the fund registered a significant growth with a net asset amounting to Rs. 12.8 billion, up from Rs. 9.9 billion in the previous fiscal year.

Key Takeaways:

  • VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of HBL Money Market Fund (HMMF) at 'AA+ (f)' (Double A plus (f)).
  • The fund offers high liquidity through investments in low-risk securities of shorter duration and maturity.
  • At the end of FY21, the fund registered a significant growth with a net asset amounting to Rs. 12.8 billion, up from Rs. 9.9 billion in the previous fiscal year.
  • The asset allocation and credit quality of the fund remained in line with the limits stipulated in the investment policy guidelines for the assigned rating.
  • The fund managed to park 96% of its investments in 'AAA' rated issue/issuer, primarily consisting of T-bills.
  • The fund underperformed against its benchmark return in several months during FY21; however, its relative ranking depicts significant improvement.
  • The total number of investors has crossed the 6,000 mark in FY21, and portfolio contribution by retail investors continues to witness a growth trend.
  • Top-10 investors' concentration is considered adequate.

Statistics:

  • Rs. 12.8 billion: Net asset value of HBL Money Market Fund (HMMF) at the end of FY21.
  • Rs. 9.9 billion: Net asset value of HBL Money Market Fund (HMMF) at the end of the previous fiscal year (FY20).
  • 96%: Average percentage of investments in 'AAA' rated issue/issuer by the fund.
  • 90 days: WAM (Weighted Average Maturity) of the fund, as per the Investment Policy Statement (IPS).
  • 6,000: Total number of investors in HBL Money Market Fund (HMMF) at the end of FY21.

Sources:

  • "VIS Reaffirms Fund Stability Rating of HBL Money Market Fund" - VIS Credit Rating Company Limited (January 4, 2022)
  • "HBL Money Market Fund's Investment Policy Statement" - HBL Money Market Fund
  • "HBL Money Market Fund's Financial Performance" - HBL Money Market Fund