Karachi, VIS Credit Ratings Company Ltd. has reaffirmed the Fund Stability Rating of UBL Income Opportunity Fund at ‘AA-(f)’, reflecting a high degree of stability in Net Asset Value with modest, fluctuating risk due to economic conditions. This follows a previous rating assessment announced on December 29, 2022.

According to VIS Credit Rating Company Limited, UBL Income Opportunity Fund, an open-end income fund managed by UBL Fund Managers Limited since March 2013, is designed to provide competitive returns through investments in various debt instruments including TFCs/Sukuks, Government Securities, Bank Deposits, and both short and long-term debt instruments.

The fund experienced a decline in size to Rs. 668 million as of June 2023, from Rs. 2.1 billion in June 2022. It has consistently complied with the minimum credit rating and Weighted Average Maturity of 4 years as set out in the Investment Policy Statement. Moreover, the fund's Duration has remained within the prescribed 180-day threshold.

Retail investors represent a substantial 79.9% of the fund's client base, with the top 10 unit holders accounting for 35.6% of the fund. In fiscal year 2023, the fund's performance did not exceed its benchmark or the average returns of its peers, placing it in the third quartile. Moving forward, the fund's Assets under Management, credit quality, and liquidity position will be crucial in maintaining its rating.