Karachi, December 31, 2018 (PPI-OT): JCR-VIS Credit Rating Co. Ltd. (JCR-VIS) has reaffirmed the Fund Stability Rating of UBL Government Securities Fund (UGSF) at ‘A+(f)’ (Single A Plus(f)). The previous rating action was announced on December 29, 2017.
The assigned rating factors in manageable interest rate risk on account of low duration maintained by the fund. The rating also reflects the fund’s low credit risk profile emanating from its policy to invest in avenues rated ‘AA-’ and above. Moreover, the fund shall invest a minimum 70% of assets (on monthly average basis) in sovereign instruments. Barring a couple of months, fund’s exposure in government securities was above 70% over FY18.
In FY18, a considerable decline has been witnessed in fund size to Rs. 1.877b (end-FY17: Rs. 3.3b). Unit holder concentration remains on the higher side. Given the quality of assets and unit-holder profile, ability to meet redemptions in a timely manner is expected to remain strong.
For more information, contact:
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