Karachi, December 29, 2016: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of UBL Liquidity Plus Fund (ULPF) at ‘AA (f)’ (Double A (f)). The previous rating action was announced on January 06, 2016.
ULPF is structured to invest in short tenor financial instruments, while maintaining conservative risk profile. Operational nvestment policy restricts credit risk exposure of the fund by stipulating a minimum rating criterion of ‘AA’ for investment instruments. Actual asset allocation was tilted towards government securities with average asset allocation to the same being approximately two-third of net assets during FY16.
In line with its mandate, Weighted Average Maturity (WAM) of the fund is capped at 90 days to limit exposure to market risk. Actual WAM has remained in compliance with internal policy limits. Despite contraction witnessed in assets under management during FY16, unit holder concentration of the fund has reduced. Liquidity profile of the fund is supported by exposure to highly marketable assets.
Fund size reduced to Rs. 2.5b (June’2015: Rs. 4.4b) at end-June’2016 while the same increased at end-September 2016 and stood at Rs. 3.4b.
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
Applicable Rating Criteria: Fund Stability Ratings (February 2012)
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