JCR-VIS assigns fund stability rating to UBL Income Opportunity Fund

Karachi, April 07, 2016 (PPI-OT):JCR-VIS Credit Rating Company Limited has assigned initial Fund Stability Rating (FSR) of ‘A-(f)’ (Single A Minus (f)) to UBL Income Opportunity Fund (UIOF) (formerly UBL Financial Sector Bond Fund (UFBF)).

UFBF, managed by UBL Fund Managers, has been changed to UIOF with the consent of Securities and Exchange Commission of Pakistan. UIOF is designed as an income fund with an objective of generating competitive returns primarily through investment in cash and near cash instruments, government securities, bank deposits and TFC/Sukuk. Investment guidelines of the fund dictate at least one-fourth of the net assets must be deployed in cash and bank deposits while investment in non-traded securities is capped at 15%. Credit risk exposure is capped at ‘A’ rated instruments apart from TFC/Sukuk where credit risk exposure is capped at ‘AA’.

Actual duration of the fund can extend up to 1.5 years, signifying fund’s ability to assume moderate interest rate risk. Liquidity risk is planned to be mitigated through limit on maximum maturity of non-traded securities at 6 months and investment in cash and near cash instrument of 25% at all times.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk