Japan Credit Rating –Vital Information Service Reaffirms Fund Stability Rating of United Growth and Income Fund

Karachi: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the Fund Stability Rating (FSR) of United Growth and Income Fund (UGIF) at ‘BBB-(f)’ (Triple B Minus (f)).

By end December 2011, provisions against most of the non-performing assets have been created by the fund, in view of which the return of the fund has been negative. However, further downside risks to NAV have been largely addressed. Any recoveries against previously provided assets will contribute positively to the fund’s return.

The fund has generated healthy return over the last quarter. With a view to safeguard the interest of unit holders of UGIF, further issuance of units of the fund have been temporarily suspended, effective October 12, 2011. Almost 52% of assets at end-March 2012 were invested in government paper, which is expected to enable the fund to meet redemptions. UBL alone holds the major portion of outstanding units.

For more information, contact:
Mr. Javed Callea
Advisor
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: javed.callea@jcrvis.com.pk

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