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

Faryal Ahmad Faheem
Deputy CEO

Applicable rating criteria: Fund Stability Ratings (December 2020)

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