Press Release

JCR-VIS Assigns Fund Stability Rating of BBB-(f) to United Islamic Income Fund

Karachi, December 08, 2010: JCR-VIS Credit Rating Company Ltd. (JCR-VIS) has assigned Fund Stability Rating of ‘BBB-(f)’ (Triple B Minus (f)) to United Islamic Income Fund (UIIF).

Launched in October 2007, UIIF is an open-end Aggressive Islamic Income Fund. The fund’s risk profile is considered weak in view of the quality of its existing holdings. A sizeable amount of assets have been recently restructured, with their proportion having increased over time on account of continuing redemptions in the fund. Individual counterparty exposures in the fund are sizeable, though the fund manager may have little room to alter asset mix, given the limited marketability of impaired assets. In view of this, liquidity risk is also considered moderately high. The AMC’s sponsoring bank features as the largest investor in the fund. JCR-VIS will continue to monitor asset quality for further impairment in NAV.

Markup rate risk on income instruments is considered low as these are pegged to market rates, though NAV remains susceptible to volatility arising from fluctuations in prices of instruments over a short term horizon attributable to low marketability of the same and changing perceptions of market with respect to credit profile of instruments. Month on month performance of the fund has depicted volatility. In the past, the fund’s rolling 12-month yield has been consistently positive, even if at times only marginal.

For further information on this rating announcement, please contact Ms. Sabeen Saleem, CFA (Ext: 510) or Ms. Sobia Maqbool, CFA (Ext: 506) at 021-35311861-70 or fax to 021-35311872-3.

Javed Callea

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 2010 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