Press Release

JCR-VIS Reaffirms Fund Stability Rating of UBL Money Market Fund

Karachi, December 31, 2018: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of UBL Money Market Fund (UMMF) at ‘AA(f)’ (Double A(f)). The previous rating action was announced on December 29, 2017.

UMMF operates as an open-end money market fund with the objective to provide investors exposure to money market instruments within a low risk portfolio, a regular stream of income and easy liquidity. The fund is required to invest in instruments having a minimum rating of AA to ensure sound credit quality of the portfolio. Weighted Average Maturity (WAM) of the fund is capped at 90 days, whilst investment in any asset that has time to maturity in excess of 6 months is not allowed. Given restrictions on WAM, the fund’s exposure to market risk is expected to remain low.

Actual asset allocation of the fund remained in line with the stipulated policy in FY18. Size of the fund increased to Rs. 1.6b (FY17: Rs. 876m) at end-FY18. Given the fund’s asset mix comprising government securities and cash, ability to meet redemptions is considered strong.

For further information on this rating announcement, please contact the undersigned (Ext: 207) or Mr. Javed Callea (Ext: 201) at 35311861-70 or fax to 35311872.




Jamal Abbas Zaidi
Advisor


Applicable Rating Criteria: Fund Stability Ratings (September 2018)

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