Karachi, VIS Credit Ratings Company Ltd. has reaffirmed the Fund Stability Rating of UBL Growth and Income Fund at ‘A+(f)’, indicating a moderate degree of stability in its Net Asset Value amidst varying economic risk factors. This announcement follows a previous rating action on December 29, 2022.

According to VIS Credit Rating Company Limited, UBL Growth and Income Fund, managed by UBL Fund Managers Limited since its inception in March 2006, is an open-end income fund. Its investment strategy focuses on medium to long-term fixed-income and short-tenor money market instruments, aiming for higher, long-term risk-adjusted returns while prioritizing capital preservation.

The fund's size decreased to Rs. 1.2 billion as of June 2023, down from Rs. 1.4 billion in June 2022. Throughout the review period, it has adhered to the asset allocation parameters and credit risk criteria set in its Offering Document. The fund also maintained compliance with its capped limits for Weighted Average Maturity and Duration.

The retail investor base of the fund witnessed a decline, dropping to 58% in June 2023 from 64% in June 2022. In contrast, the concentration of the top 10 investors increased significantly, rising to 65% in June 2023 from 47% in June 2022. Notably, the fund’s returns have exceeded both its benchmark and the average returns of its peers, placing it at the top of its category.