Karachi: JCR-VIS Credit Rating Company Limited has harmonized the Fund Stability Rating (FSR) of UBL Liquidity Plus Fund (ULPF) at ‘AA+(f)’ (Double A Plus (f)).
Structured as an open-end money market fund, the fund’s exposure to both credit risk and interest rate risk is considered minimal. The assigned rating takes into the operational investment policy, as per which, the fund targets to allocate 70% of net assets to treasury bills, 25% to TDRs with commercial banks and placements with DFIs, and the remaining 5% are to be invested in reverse repo transactions against GoP securities and bank accounts. The fund does not plan to undertake overseas exposures presently. In keeping with the investment policy of the fund, net assets are primarily deployed in Treasury bills, which averaged 83% of net assets during CY11.
Target duration was earlier limited to a maximum of 90 days. This has recently been revised downwards to 60 days. Weighted average maturity of the fund’s assets was 72 days at end December 2011, reducing to 52 days by end February 2012.
Unit-holding of the fund features concentration. While the fund’s ability to meet redemption requests in a timely manner is considered sound, given the liquidity profile of assets, it may nevertheless benefit from a more diversified investor base.
For more information, contact:
Mr. Javed Callea
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: email@example.com