Press Release
VIS Upgrades Fund Stability Rating of UBL Growth and Income Fund
Karachi, January 06, 2021: VIS Credit Rating Company Limited. (VIS) has upgraded the Fund Stability Rating (FSR) of UBL Growth and Income Fund (UGIF) to ‘A+ (f)’ (Single A Plus (f)) from ‘A (f)’ (Single A (f)). The previous rating action was announced on December 30, 2019.
United Growth & Income Fund (UGIF) was launched in 2006, as a fixed income fund with an aggressive asset allocation mandate. The fund offers investment opportunities in medium to long term fixed income instruments with risk adjusted returns while preserving the capital over the long-term. The rating action incorporates updated ‘FUND STBILITY RATING methodology which can be found on our website or on the following link https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf.
The Offering Document (OD) of the fund restricts exposure in A- rated or above securities and Government securities. Actual asset allocation of the fund has primarily been maintained in ‘AA-’ or higher rated avenues. During FY20, the fund parked most of its assets in cash balances and government securities, remaining chunk investment portfolio consisted of TFCs. Net assets of the fund declined during FY20 closing at Rs. 878mn (FY19: 1.7b). Moreover, duration remained within the defined policy limits during the period under review.
For further information on this rating announcement, please contact Mr. Arsal Ayub (Ext: 216) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk
Faryal Ahmed Faheem
Deputy CEO
Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf