Press Release

VIS Reaffirms Fund Stability Rating of UBL Income Opportunity Fund
 

Karachi, January 13, 2022: VIS Credit Rating Company Limited (VIS) has reaffirmed the Fund Stability Rating (FSR) of UBL Income Opportunity Fund (UIOF) at ‘AA- (f)’ (Double A minus (f)). Previous rating action was announced on January 6, 2021.

UIOF is designed as an income fund with an objective of generating competitive returns primarily through investment in cash & near cash instruments, government securities, bank deposits and TFC/Sukuk. At end-FY21, the fund registered a sizeable growth with net asset amounting to Rs. 2.02b from Rs. 607m at the end of FY20. As per management’s internal investment policy, exposures are limited to ‘A-’ and above rated investment avenues.

During FY21, asset allocation and credit quality of the fund largely complied with limits stipulated in investment policy, although some deviations were noted against benchmarks for the assigned rating as asset allocation in spread transactions increased during the year. Asset allocation in ‘AAA’ rated issue/issuer was maintained above 50% on average comprising of largely PIBs and cash. Liquidity profile of the fund remains adequate in terms of liquid assets and investor concentration. The fund during the outgoing year underperformed against its benchmark rate although against its peer average, returns were higher. Maintenance of credit quality metrics in line with benchmarks for the assigned rating along with improvement in performance metrics will be important for rating, going forward.

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

________________________________________________________________________________________________________________________________
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 .

VIS Credit Rating Company Limited