Press Release

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

Karachi, August 4, 2014: JCR-VIS Credit Rating Company Limited has revised the Fund Stability Rating (FSR) of UBL Liquidity Plus Fund (ULPF) from ‘AA+(f)’ (Double A Plus (f)) to ‘AA (f)’ (Double A (f)).

The rating action incorporates change in fund’s operational investment policy, whereby the 60-day cap on the fund’s duration has been removed. The current investment policy limits Weighted Average Maturity (WAM) of the portfolio at 90 days while single asset maturity is limited at 6 months. Actual WAM of the fund remained below the ceiling and was reported at 54 days at end June 2014. Additionally, offering document of the fund has also been revised; changes included removal of all floors on asset allocation i.e. the previous 20% floor on investment in government securities and 10% on deposits with Banks/DFIs. Actual asset allocation of the fund remained skewed towards sovereign instruments through most part of the year, though end-June 2014 balance was much lower at 8%. Unit holder concentration of the fund has trended downwards in the outgoing year.

ULPF is the largest fund managed by UBL Fund Managers Limited. The fund is structured to invest mainly in short-term financial instruments while keeping exposures restricted to low end of the risk spectrum. Overall risk profile of the fund is considered conservative, with investors protected to a large extent against any sudden shocks in interest or other macroeconomic indicators.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 506) at 35311861-70 or fax to 35311872.



Jamal Abbas Zaidi
Deputy 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 2014 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .