Press Release

JCR-VIS Reaffirms Fund Stability Rating of UBL Income Opportunity Fund

Karachi, December 29, 2017: JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of UBL Income Opportunity Fund (UIOF) (formerly UBL Financial Sector Bond Fund (UFBF)) at ‘A-(f)’ (Single A Minus (f)). The previous rating action was announced on December 30, 2016.

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. The assigned rating factors in the fund’s policy to invest in avenues rated ‘A’ and above, apart from TFC/Sukuk where credit risk exposure is capped at ‘AA’. Actual asset allocation has remained in line with defined policy guidelines with minimum exposure in ‘A+’ and above rated instruments. Weighted average duration of the fund is capped at 1.5 years with significant decline in duration on a timeline basis resulting in lower exposure to market risk.

Net assets of the fund increased to Rs. 300m by end-August 2016, though subsequently declining to Rs. 177m at end-FY17. Fund size further reduced to Rs. 147m by end-November 2017. Rating is constrained by high unit holder concentration in the fund which continues to remain sizeable. With exposure of the fund primarily in liquid avenues, ability of the fund to meet redemptions is considered adequate.

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 (December 2017)

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