Press Release

JCR-VIS Reaffirms Fund Stability Rating of UBL Savings Income Fund

Karachi, April 18, 2013: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of UBL Savings Income Fund (USIF) at ‘AA-(f)’ (Double A Minus (f)).

Even though as an income fund, USIF is allowed to invest in a wide range of avenues across the credit risk spectrum; the operational investment policy for FY13 limits the investment avenues of the fund and also restricts credit risk exposure of the fund to ‘AA-’ (Double A Minus) entities/ instruments. Moreover, maximum duration limit of 180 days is also stipulated in the operational investment policy. More than 80% of the fund’s net assets were invested in government securities in the last one and a half years and remaining investments in entities and instruments rated at least ‘AA-‘(Double A Minus). Moreover, weighted average duration of the fund has also remained within the limit of 180 days. In view of this, exposure of the fund to credit and market risk is considered manageable.

Given that the fund has largely been invested in government securities and cash and bank balances, its annual returns have been slightly below benchmark which is 6M Kibor. Concentration in investor profile has significantly reduced from end-Dec’11 level. Ability of the fund to meet redemptions is considered sound.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sobia Maqbool, CFA (Ext: 604) 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 2013 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .