Press Release

Fund Stability Rating of UBL Money Market Fund

Karachi, August 18, 2014: JCR-VIS Credit Rating Company Limited has upgraded the Fund Stability Rating (FSR) of UBL Money Market Fund (UMMF) (previously UBL Savings Income Fund) from ‘AA-(f)’ (Double A Minus (f)) to ‘AA(f)’ (Double A(f)).

The conversion from USIF to UMMF has entailed a change in risk profile of the fund and investment policy has been accordingly modified. As per the revised offering document, at least half of the fund’s assets are now required to be deployed in government securities, based on quarterly average investment. Other investment avenues include reverse repo against government securities and placements with financial institutions under various modes. The fund may also take exposure in commercial papers, though such investment is limited to 10% of net assets. The fund’s weighted average maturity is capped at 90 days. Given the restrictions on asset allocation, the fund’s exposure to credit and interest rate risk is expected to remain low. Since conversion, actual asset allocation has remained aligned with the revised policy guidelines.

For further information on this rating announcement, please contact Ms. Sobia Maqbool, CFA (Ext: 604) or Mr. Javed Callea (Ext: 501) at 35311861-70 or fax to 35311872.

Jamal Abbas Zaidi
Deputy CEO

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 2014 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited