Karachi, January 07, 2021 (PPI-OT): VIS Credit Rating Company Limited. (VIS) has upgraded the Fund Stability Rating (FSR) of UBL Government Securities Fund (UGSF) to ‘AA (f)’ (Double A (f)) from ‘A+ (f)) (Single A Plus (f)). The previous rating action was announced on December 31, 2019.
(UGSF) aims towards achieving the objective to earn competitive returns by investing primarily in sovereign instruments and government paper. Guidelines for investment of the fund are based on an investment horizon in the excess of 1 year. The rating action incorporates updated ‘FUND STBILITY RATING methodology which can be found on our website or on the following link https://s3-us-west-2.amazonaws.com/backupsqlvis/docs/FundstabilityRating.pdf.
The fund’s offering document (OD) points to a conservative credit risk profile suggesting that it restricts and limits its primary exposure in sovereign instruments and cash holdings in order to preserve a liquid asset mix. During FY20, the fund managed to preserve more than half its assets in government securities while remaining asset mix comprised of cash balances and other authorized investment avenues, credit quality requirements have also remained in during the period under review. Given the quality of assets, ability to meet redemptions in a timely manner is expected to remain strong.
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
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