Press Release

JCR-VIS Revises Fund Stability Rating of UBL Government Securities Fund

Karachi, January 06, 2016: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has revised the Fund Stability Rating of UBL Government Securities Fund (UGSF) from ‘A+(f)’ (Single A Plus (f)) to ‘A(f)’ (Single A (f)). The previous rating action was announced on August 04, 2014

UGSF is designed to generate returns by minimizing risk, through investment in government securities. The operational policy of the fund has established a floor of 70% in relation to investment in government securities. Credit risk exposure is also minimized, as the fund prohibits investment in asset classes below rating of ‘AA-’. Actual asset allocation remained in line with the specified guidelines, as sovereign instruments comprised approximately 90% of the net assets in FY15 on average basis. While actual Weighted Average Maturity (WAM) of the fund has remained in line with investment policy, given the increase in WAM and duration of the fund during FY15, exposure to interest rate risk has increased.

For further information on this rating announcement, please contact the undersigned (Ext: 516) or Mr. Javed Callea (Ext: 501) at 35311861-70 or fax to 35311872.


Jamal Abbas Zaidi
Advisor

Applicable Rating Criteria: Fund Stability Ratings (February 2012)

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