Karachi, December 31, 2018 (PPI-OT): JCR-VIS Credit Rating Company Limited has reaffirmed the Fund Stability Rating (FSR) of UBL Money Market Fund (UMMF) at ‘AA(f)’ (Double A(f)). The previous rating action was announced on December 29, 2017.
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, a regular stream of income and easy liquidity. The fund is required to invest in instruments having a minimum rating of AA to ensure sound credit quality of the portfolio. Weighted Average Maturity (WAM) of the fund is capped at 90 days, whilst investment in any asset that has time to maturity in excess of 6 months is not allowed. 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 in FY18. Size of the fund increased to Rs. 1.6b (FY17: Rs. 876m) at end-FY18. Given the fund’s asset mix comprising government securities and cash, ability to meet redemptions is considered 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