Press Release

VIS Reaffirms Fund Stability Rating of Government Securities Fund

Karachi, January 09, 2025: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) at ‘AA(f)’ (Double A (f)) of UBL Government Securities Fund (UGSF). The medium to long-term fund 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, 2023.

Launched in July 2011, UBL Government Securities Fund (UGSF) is an open-end income fund, managed by UBL Fund Managers Limited. The investment objective of the fund is to generate a competitive return with minimum risk, by investing primarily in Government Securities.

Assigned rating takes into account the Fund’s asset allocation, with Assets Under Management (AUM) recording a robust growth of ~253% during FY24. During the review period, the Fund’s investments were in line with the guidelines stated in the offering document, with investments concentrated in government securities followed by exposures in cash deposits. Assigned rating also reflects the Fund’s credit quality wherein credit exposures were maintained in investments rated AA- and above, as stipulated in the offering document, with investments dominated by government securities and AAA rated assets.

The weighted average time to maturity (WAM) of the Fund has remained well below the defined benchmark prescribed in the offering document. The liquidity profile of the Fund is supported by its sizable quantum of liquid assets relative to its total assets. Additionally, client concentration risk is considered low with the retail investors representing majority of its clientele., While fund performance was lower than the benchmark in the second half of FY24, returns have exceeded benchmarks since June 2024.

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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .