Press Release
JCR-VIS Reaffirms Fund Stability Rating of UBL Liquidity Plus Fund
Karachi, December 29, 2017: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of UBL Liquidity Plus Fund (ULPF) at ‘AA (f)’ (Double A (f)). The previous rating action was announced on December 29, 2016.
ULPF was launched with a mandate to provide competitive returns to unit-holders while maintaining a conservative risk profile and high liquidity. The fund’s offering document limits exposure to AA rated and above exposures, with exposure to government securities allowed to the extent of 100% of net assets, representing a conservative risk profile. Actual asset allocation of the fund was dominated by placements with banks and T-Bills in FY17 with the fund remaining compliant with credit quality stipulations.
The current investment policy limits Weighted Average Maturity (WAM) of the portfolio at 90 days while single asset maturity is limited at 6 months. Actual WAM of the fund remained below the ceiling during period under review. Fund size depicted decline during October-December 2016, though steadily increasing to Rs. 7.0b by end-November 2017. Liquidity profile of the fund is supported by exposure to highly marketable assets.
For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 35311861-70 or fax to 35311872.
Jamal Abbas Zaidi
Advisor
Applicable Rating Criteria: Fund Stability Ratings (December 2017)