Press Release

JCR-VIS assigns Management Quality Rating of AM2- to UBL Fund Managers Limited

Karachi, February 12, 2009: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has assigned Management Quality (MQ) rating of ‘AM2-’ (AM Two Minus) to UBL Fund Managers Limited (UBL Funds).

In addition to a closed end capital protected fund, UBL Funds is presently managing five open end funds with collective assets under management of over Rs. 19b. The total number of investors stood close to 9000 at the end of 2008, with approximately 14% of the outstanding units held by retail investors. With the establishment of a dedicated retail team, the company has placed special emphasis on growth in assets under this category, though funds under management continue to feature significant concentration in unit-holding. A significant proportion of the unitholding is also held by associated parties.

A key rating driver in case of MQ ratings is the performance of funds under management. As also seen throughout the sector, returns of stock and balanced funds managed by UBL Funds were impacted by downslide in equity markets. Furthermore, portfolio quality indicators may come under stress in case of income/money market funds as credit risk has heightened in the current economic environment.

The company benefits from the financial support of its sponsoring bank. However, with judicious focus on liquidity management, UBL Funds has not resorted to any form of borrowings from its sponsor. JCR-VIS has also been given to understand that all redemption requests have been met within the regulatory timeframe.

UBL Funds has in place a competent management team to oversee its various responsibilities as asset manager. The MQ rating assigned takes into account continuous efforts to improve support infrastructure, including investment in IT software sourced through an international vendor and strengthening of risk management systems. The new software is expected to enable integration of various facets of operations.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 or fax to 5311872.



Safdar Kazi
Director

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 February 12, 2009 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.