Press Release

JCR-VIS Assigns Fund Stability Rating to UBL Income Opportunity Fund

Karachi, April 07, 2016: JCR-VIS Credit Rating Company Limited has assigned initial Fund Stability Rating (FSR) of ‘A-(f)’ (Single A Minus (f)) to UBL Income Opportunity Fund (UIOF) (formerly UBL Financial Sector Bond Fund (UFBF)).

UFBF, managed by UBL Fund Managers, has been changed to UIOF with the consent of Securities and Exchange Commission of Pakistan. UIOF is designed as an income fund with an objective of generating competitive returns primarily through investment in cash & near cash instruments, government securities, bank deposits and TFC/Sukuk. Investment guidelines of the fund dictate at least one-fourth of the net assets must be deployed in cash and bank deposits while investment in non-traded securities is capped at 15%. Credit risk exposure is capped at ‘A’ rated instruments apart from TFC/Sukuk where credit risk exposure is capped at ‘AA’.

Actual duration of the fund can extend up to 1.5 years, signifying fund’s ability to assume moderate interest rate risk. Liquidity risk is planned to be mitigated through limit on maximum maturity of non-traded securities at 6 months and investment in cash and near cash instrument of 25% at all times.

For further information on this rating announcement, please contact the undersigned (Ext: 508) or Mr. Javed Callea (Ext: 501) at 35311861-70 or fax to 35311872.


Mohammed Khalid Ali
Advisor

Applicable Rating Criteria: Fund Stability Ratings (February 2012)
http://jcrvis.com.pk/Images/FSRMeth-201202.pdf

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 2016 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .