Press Release

VIS Reaffirms Fund Stability Rating of UBL Growth and Income Fund

Karachi, January 09, 2025: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) of UBL Growth and Income Fund at ‘A+(f)’ (A Plus (f)). The medium to long-term fund rating of ‘A+’ denotes moderate degree of stability in Net Asset Value; Risk factors may vary with possible changes in the economy. The previous rating action was announced on December 29, 2023.

Launched in March 2006, UBL Growth and Income Fund (UGIF) is an open-end income fund, managed by UBL Fund Managers Limited. The investment objective of the fund is to invest in medium to long-term fixed-income instruments as well as short-tenor money market instruments and seek to generate higher, long-term, risk-adjusted returns while preserving capital.

Assigned rating takes into account the asset allocation strategy of the Fund, with Assets Under Management (AUM) recording a significant growth of ~217% during FY24. The Fund’s asset allocation remained in line with the parameters outlined in the offering document, with Government Securities, including T-Bills, PIBs (Fixed and Floater), and GOP Ijara Sukuk constituting the largest share of investments, followed by allocations in cash and TFCs/Sukuks. On average, investments were predominantly held in Govt Sec/ AAA rated assets, while the remaining were placed in AA-, AA, and AA+ rated instruments.

The weighted average time to maturity (WAM) has remained within the defined threshold as defined in the offering document, while the liquidity profile remained satisfactory. The Fund’s clientele primarily consists of retail investors, with corporate investors contributing to smaller portion of the Fund’s assets. Additionally, client concentration risk of the Fund is considered low. In terms of the Fund’s performance, the Fund is ranked as the top performing fund among its peers.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: Fund Stability Ratings
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

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