Press Release

JCR-VIS Reaffirms Fund Stability Rating of UBL Liquidity Plus Fund

Karachi, December 8, 2010: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of UBL Liquidity Plus Fund (ULPF) at ‘AA+(f)’ (Double A Plus (f)).

Structured as an open-end money market fund, the fund’s exposure to both credit risk and interest rate risk is considered minimal. In FY10, on an average T-bills comprised 69% of net assets. Investment policy of the fund for FY11 targets allocation of 70% to government securities, while remaining assets are subject to a minimum issuer/issue rating requirement of AA. Even though interest rates have increased in recent months, the fund is susceptible to limited price risk as by policy duration of the fund may not exceed 90 days. With actual weighted average time to maturity of assets maintained at 66 days on an average during 2010, the impact of three discount rate increases during the year has almost been negligible.

ULPF is the largest money market fund in the industry. Returns posted by the fund have been competitive. The fund has witnessed considerable growth, with net assets standing at Rs. 12.3b at end-October 2010. The fund flow has mostly been from large institutional investors, in view of which unit holder concentration is high. However, no single investor holds more than 10% of outstanding units. Number of retail investors has grown rapidly, though their holding has yet to become sizeable in overall context. The ability of the fund to honor redemptions is considered strong in view of the strong liquidity profile of assets.

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

Javed Callea
Advisor

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 .