Karachi, December 29, 2016: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of UBL Money Market Fund (UMMF) at ‘AA(f)’ (Double A(f)). The previous rating action was announced on January 06, 2016.
Investment policy of the fund mandates to maintain a minimum of 50% exposure in government securities, while other investment avenues are also primarily subject to a minimum rating of AA. During FY16, actual asset allocation has remained aligned with the policy guidelines with average month-end allocation to government securities representing over three-fourth of net assets, signifying limited credit risk exposure. Weighted Average Maturity (WAM) is capped at 90 days and remained below the stipulated limit during FY16 on account of which sensitivity of the fund’s NAV to interest rate risk is considered low. Investor concentration in the fund increased in the outgoing year; given the fund’s asset mix, ability to meet redemptions in a timely manner is considered strong.
Net Assets of the fund have witnessed a declining trend and stood at Rs. 685m (June’2016: Rs. 1.2b) at end-September’2016.
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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