Press Release
VIS Reaffirms Fund Stability Rating of UBL Income Opportunity Fund
Karachi, December 31, 2019: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of UBL Income Opportunity Fund (UIOF) at ‘A-(f)’ (Single A Minus (f)). The previous rating action was announced on December 31, 2018.
UIOF is designed as an income fund with an objective of generating competitive returns primarily through investment in cash & near cash instruments, government securities, bank deposits and TFC/Sukuk. The assigned rating factors in the fund’s policy to invest in avenues rated “A” and above, apart from TFC/Sukuk where credit risk exposure is capped at ‘AA’ and above. Actual asset allocation has remained in line with defined policy guidelines and with the assigned ratings criteria. Weighted Average Maturity (WAM) of the fund’s assets has been capped at 4 years whereas duration of the fund can extend up to 1.5 years. In line with investment mandate, weighted average maturity (WAM) of the fund remained at less than four years.
Net assets of the fund increased to Rs. 833m (FY17: Rs. 557m) at end-FY19. However, fund size declined to Rs. 511m at end-November 2019. With sizeable exposure of the fund in liquid avenues, ability of the fund to meet redemptions is considered adequate.
For further information on this rating announcement, please contact Mr. Talha Iqbal (Ext: 213) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk.
Javed Callea
Advisor
Applicable Rating Criteria: Fund Stability Ratings (September 2018)
https://s3-us-west 2.amazonaws.com/backupsqlvis/docs/Fund%20stability%20Rating092018.pdf