Press Release

JCR-VIS reaffirms Fund Stability Ratings of United Growth & Income Fund and United Money Market Fund

Karachi, May 5, 2009: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of United Growth & Income Fund (UGIF) at ‘A(f)’ (Single A (f)) and FSR of United Money Market Fund at ‘A+(f)’ (Single A Plus (f)). Ratings have been removed from ‘Rating Watch- Developing’ Status assigned in December 2008.

UMMF and UGIF are managed by UBL Fund Managers Limited. UMMF can invest in a diversified set of asset classes, including placements and TDRs. UGIF is an open end fixed income scheme, with a long term orientation. The largest constituent of fund’s assets is the TFCs portfolio. By way of investment policy guidelines, UGIF can also invest in ready-future spread transactions though no exposure was outstanding in the last quarter of CY2008.

The average credit risk profile of both the funds has been maintained over the last year in line with the assigned ratings while interest rate risk is low on account of the short duration or floating rate returns associated with investment avenues. The liquidity profile of the funds witnessed some degree of stress on account of large volume of redemptions received over the outgoing calendar year. However, redemptions were met through cash and cash equivalents and no credit lines were utilized.

On account of a regulatory directive to apply discounts to the valuation of TFCs in November 2008, UGIF has experienced a revaluation loss of 7.2% while UMMF experienced revaluation losses of 6.8%. Furthermore, with the subsequent application of a new pricing formula for long term bonds, the price history of these instruments has depicted volatility mirrored in the NAV of income funds. The annualized standard deviation of UGIF for first nine months of FY09 has been 7.4% while the same for UMMF has been 6.8%.

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.


Faheem Ahmad
President & CEO

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 May 05, 2009 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.