Press Release

VIS Upgrades Fund Stability Rating of UBL Money Market Fund
 

Karachi, January 06, 2021: VIS Credit Rating Company Limited has upgraded the Fund Stability Rating (FSR) of UBL Money Market Fund (UMMF) at ‘AA+ (f)’ (Double A Plus (f)). The previous rating action was announced on December 31, 2019.

UMMF operates as an open-end money market fund with the objective to provide investors exposure to money market instruments within a low risk portfolio. The rating action incorporates updated ‘FUND STBILITY RATING methodology which can be found on our website or on the following link https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf.

Net assets of the fund witness an increase closing at 5b end-June’20 (FY19: 2.7b) As per the Investment Policy Strategy (IPS), the fund is required to invest in instruments having a minimum rating of AA to ensure sound credit quality. Weighted Average Maturity (WAM) of the fund is capped at 90 days, whilst investment in any asset that has time to maturity must not exceed 6 months. Given restrictions on WAM, the fund’s exposure to market risk is expected to remain low. Actual asset allocation of the fund remained in line with the stipulated policy during FY20. Size of the fund significantly increased to Rs. 5.0b (FY19: Rs. 2.7m) at end-FY20. Given the fund’s liquid asset mix, ability to meet redemptions is considered adequate.




For further information on this rating announcement, please contact Mr. Arsal Ayub (Ext: 216) or the undersigned (Ext: 306) at (021) 35311861-66 or email at info@vis.com.pk .



Faryal Ahmed Faheem
Deputy CEO



Applicable Rating Criteria: Fund Stability Ratings (December 2020
https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf

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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 2021 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited