Press Release

JCR-VIS upgrades Management Quality Rating of UBL Fund Managers Limited to AM2

Karachi, February 4, 2010: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has upgraded the Management Quality (MQ) Rating of UBL Fund Managers Limited (UBL Funds) from ‘AM2-’ (AM-Two Minus) to ‘AM2’ (AM-Two). Outlook on the rating is ‘Stable’.

The rating upgrade takes into account the improvement observed in both the qualitative and quantitative parameters underpinning the management quality rating assessment. Over time, UBL Funds has strengthened its organizational structure, adding both breadth and depth to staff and enhanced level of investment controls. The size and capabilities of risk and research staff has also been improved, providing support to the investment management function. The management has envisaged the implementation of Global Investment Performance Standards (GIPS®) during the on-going year.

In terms of the company’s ability to manage different asset classes, the results have shown some degree of variance. Performance of funds with equity exposures has trended upwards relative to peers, though some of this has also been contributed by the international exposures assumed by the funds. So far, international exposures have been taken by way of investment in mutual funds only and the company is largely reliant on secondary research resources. Expertise in this area is also being developed in-house, alongside. In the fixed income category, the choice of assets has not been consistently superior. Fixed income research capabilities have nevertheless shown some maturity over time.

The company has six funds under management, including one closed-end scheme, with cumulative AUMs of Rs. 25.2b at November-09 end, translating into market share of 10.7%. As is true for most industry participants, the funds feature high level of unit-holder concentration. The recent spate of events in the market has brought associated risks to the forefront and this is now actively discussed at Investment Committee level. The company has plans to enhance its geographical presence to increase retail penetration. So far, UBL and its affiliates are one of the largest investors in funds under management. Placements by the funds with UBL were however limited. Furthermore, the company, by policy, does not enter into back-to-back arrangements with its clients.

The asset management industry has undergone significant stress over the past one and a half years and recovery in terms of fresh inflow of funds may remain slow. Furthermore, issues with respect to pricing of corporate debt instruments and lack of liquidity in the market also remain a source of concern.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 35311861-70 or fax to 35311872.



Safdar Kazi
Director

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 2010 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .