Press Release

VIS Reaffirms Fund Stability Rating of UBL Growth and Income Fund
 

Karachi, January 13, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of UBL Growth and Income Fund (UGIF) at ‘A+(f)’ (Single A Plus (f)). Previous rating action was announced on January 6, 2021.

United Growth & Income Fund (UGIF) was launched in 2006, as a fixed income fund with an aggressive asset allocation mandate. The fund offers investment opportunities in medium to long term fixed income instruments with risk adjusted returns while preserving the capital over the long-term. Net assets of the funds increased in the outgoing fiscal year and amounted to Rs. 1.79b (FY20: Rs. 0.8b). Internal investment policy limits investments to ‘A-’ exposures.

During FY21, the fund largely remained in compliance with the asset allocation and credit quality requisites for the assigned ratings. Asset allocation in cash holdings accounted for about 21.7% while remaining assets were allocated in government securities namely PIBs and T-Bills. Some breaches were recorded in higher allocation in MTS transactions than prescribed by Offering Document, however since they were one off and subsequently aligned, reaffirmation of rating is supported. Weighted Asset Maturity (WAM) and duration metrics were met for the assigned rating. Liquidity remains adequate. Fund performance improved in FY21 with the fund outperforming its benchmark and peers.
For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 204) at 35311861-70 or email at info@vis.com.pk




Faryal Ahmad Faheem
Deputy CEO

Applicable rating criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

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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 2022 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

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