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JCR-VIS revises Fund Stability Rating of United Bank Limited Liquidity Plus Fund - Press Release issued by JCR-VIS Credit Rating Company Limited

August 5, 2014



Following is the text of press release issued by JCR-VIS Credit Rating Company Limited

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JCR-VIS Credit Rating Company Limited has revised the Fund Stability Rating (FSR) of UBL Liquidity Plus Fund (ULPF) from 'AA+(f)' (Double A Plus (f)) to 'AA (f)' (Double A (f)).

The rating action incorporates change in fund's operational investment policy, whereby the 60-day cap on the fund's duration has been removed. The current investment policy limits Weighted Average Maturity (WAM) of the portfolio at 90 days while single asset maturity is limited at 6 months.

Actual WAM of the fund remained below the ceiling and was reported at 54 days at end June 2014. Additionally, offering document of the fund has also been revised; changes included removal of all floors on asset allocation i.e. the previous 20% floor on investment in government securities and 10% on deposits with Banks/DFIs.

Actual asset allocation of the fund remained skewed towards sovereign instruments through most part of the year, though end-June 2014 balance was much lower at 8%. Unit holder concentration of the fund has trended downwards in the outgoing year.

ULPF is the largest fund managed by UBL Fund Managers Limited. The fund is structured to invest mainly in short-term financial instruments while keeping exposures restricted to low end of the risk spectrum. Overall risk profile of the fund is considered conservative, with investors protected to a large extent against any sudden shocks in interest or other macroeconomic indicators.

For more information, contact:

Ms. Sobia Maqbool

CFA

JCR-VIS Credit Rating Company Limited

VIS House, 128/C,

25th Lane Off Khayaban-e-Ittehad,

Phase VII, DHA, Karachi

Tel: +92-21-35311861-72

Fax: +92-21-35311873

Email: sobia@jcrvis.com.pk

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Source: Pakistan Press International


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