VIS Upgrades Fund Stability Rating of UBL Income Opportunity Fund

Karachi, January 07, 2021 (PPI-OT): VIS Credit Rating Company Limited (VIS) has upgraded the Fund Stability Rating (FSR) of UBL Income Opportunity Fund (UIOF) (formerly UBL Financial Sector Bond Fund (UFBF)) to ‘AA- (f)’ (Double A Minus (f)) from ‘A (f)’ (Single A (f). The previous rating action was announced on October 15, 2020.

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. The rating action incorporates updated ‘FUND STBILITY RATING methodology which can be found on our website or on the following link:

As per the Investment Policy Statement (IPS), the fund shall take maximum 15% exposure in ‘A-’ rated exposures, with the remaining exposure being limited to ‘A-’ above rated instruments; apart from TFC/Sukuk, where credit risk exposure is capped at ‘AA’ and above.

Net assets of the fund declined to Rs. 607m by end-FY20. Minor deviations have been observed in the Actual asset allocation plan of the fund. Credit quality exposure manifests that over 40% of the fund’s assets were placed in AAA rated issue/issuer. With exposure of the fund primarily in liquid avenues, ability of the fund to meet redemptions is considered adequate.

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

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