Press Release

JCR-VIS reaffirms Management Quality Rating of UBL Fund Managers Limited

Karachi, April 1, 2008: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Management Quality (MQ) Rating of UBL Fund Managers Limited (UBL Funds) at ‘AM2-’. The rating re-affirmation reflects the management’s efforts to strengthen the overall human resource of the company as well as the risk management systems as was committed to us earlier.

The strong growth in assets under management has placed the company as one of the largest AMCs operating in the private sector. This, along with the planned increase in the asset classes, robust information technology (IT) systems in terms of portfolio management, and risk monitoring capabilities will be the key to maintaining judicial oversight over growth. With respect to risk management, manuals covering key operational areas are in place and a dedicated person has been inducted to head the function. JCR-VIS will follow the implementation of these manuals to incorporate risk monitoring measures in the IT infrastructure of the company, and understands that the management is negotiating with international software providers to the mutual fund industry.

In accordance with the methodology of JCR-VIS, Management Quality Ratings place greater emphasis on performance of funds under management vis-à-vis stated objectives and respective peer groups for mature companies, and that would be the key for maintaining ratings going forward. The planned strengthening of the research function will be a key achievement in this area. Further, the proportion of retail investors in value terms is relatively small and to generate a stable unit holder base and to mitigate the reliance on the financial sector, a strong marketing function needs to be developed, which will continue to support existing ratings. The impact of change in capital gains tax for the financial sector will also be monitored in terms of its reflection on their investment exposures to the mutual fund sector.

JCR-VIS has also reaffirmed the Fund Stability Rating of United Money Market Fund (UMF) at ‘A+(f)’ (Single A Plus (f)) and United Growth & Income Fund (UGIF) at ‘A(f)’ (Single A(f)). Fund stability ratings are driven by the credit, liquidity and market risk exposures taken by these funds. The average credit scores of the fund are in line with the assigned ratings. In case of UMF, the reduction in CFS exposures has been undertaken and the fund is now invested in line with its mandate. While the NAV of UGIF may experience some downside movement on account of exposures taken in spread transactions, JCR-VIS expects the fund to be able to maintain moderate degree of stability over the medium to long term. Price risks are presently assumed to be low.

For further information on this rating announcement, please contact Mr. Safdar Kazi or Ms. Sobia Maqbool at 5311861 or fax to 5311872.



Faheem Ahmad
President & CEO

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 2008 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .