Press Release
VIS Reaffirms Fund Stability Rating of UBL Income Opportunity Fund
Karachi, December 29, 2023: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) at ‘AA-(f)’ (Double A Minus (f)). The medium to long-term rating of ‘AA-’ denotes high degree of stability in Net Asset Value; Risk is modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 29, 2022.
Launched in March 2013, UBL Income Opportunity Fund (UIOF) is an open-end income fund managed by UBL Fund Managers Limited. The investment objective of the fund is to provide a competitive rate of return to its investors by investing in quality TFCs / Sukuks, Government Securities, Bank Deposits, and short and long-term debt instruments.
The fund’s size has decreased to Rs. 668m as of June’23 (June’22: Rs. 2.1b). The fund also adhered to the minimum credit rating and Weighted Average Maturity of 4 years as outlined in the Investment Policy Statement. The Duration has also adhered to the prescribed threshold, not exceeding 180 days.
The retail segment accounts for a significant 79.9% of the fund's overall client base, while the concentration of the top 10 unit holders accounts for 35.6%. During FY23, the fund’s return failed to surpass its benchmark and peer average while placed in the third quartile relative to peers. Going forward, the fund’s AUMs, credit quality, and liquidity position will remain important for rating.
For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 208) on 021-35311861-64 or email at info@vis.com.pk.
Syed Asif Ali
Executive Director
Applicable Rating Criteria: Fund Stability
https://docs.vis.com.pk/docs/FundstabilityRating.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf