Karachi, January 13, 2022 (PPI-OT):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 and 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 more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/