Press Release

JCR-VIS Upgrades Fund Stability Rating of UBL Growth and Income Fund
 

Karachi, March 10, 2017: JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has upgraded the Fund Stability Rating (FSR) of UBL Growth and Income Fund (UGIF) to ‘A’(f) (Single A (f)) from ‘BBB+(f)’ (Triple B Plus (f)). The previous rating action was announced on December 30, 2016.

The revision in rating incorporates adoption of a more prudent investment policy with minimum threshold defined for credit risk and weighted average duration of the fund. As per the revised investment policy, the fund is required to maintain minimum of 10% net assets each in cash & T-bills, while exposure to Corporate Bonds may comprise up to 50% of net assets. The fund will maintain up to 75% of its net assets in A or higher rated investment avenues at all times. As at end-February’2017, over four-fifth of the fund’s investments were in A and above rated counterparties. Exposure to market risk is considered manageable on account of 1 year cap on weighted average duration of the fund.

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


Jamal Abbas Zaidi
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, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 2017 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited