Press Release

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

Karachi, December 31, 2018: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of UBL Government Securities Fund (UGSF) at ‘A+(f)’ (Single A Plus(f)). The previous rating action was announced on December 29, 2017.

The assigned rating factors in manageable interest rate risk on account of low duration maintained by the fund. The rating also reflects the fund’s low credit risk profile emanating from its policy to invest in avenues rated ‘AA-’ and above. Moreover, the fund shall invest a minimum 70% of assets (on monthly average basis) in sovereign instruments. Barring a couple of months, fund's exposure in government securities was above 70% over FY18.

In FY18, a considerable decline has been witnessed in fund size to Rs. 1.877b (end-FY17: Rs. 3.3b). Unit holder concentration remains on the higher side. Given the quality of assets and unit-holder profile, ability to meet redemptions in a timely manner is expected to remain 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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