VIS Upgrades Fund Stability Rating of UBL Money Market Fund - AsiaNet-Pakistan

VIS Upgrades Fund Stability Rating of UBL Money Market Fund

January 7, 2021 | | Share:

Karachi, January 07, 2021 (PPI-OT): VIS Credit Rating Company Limited has upgraded the Fund Stability Rating (FSR) of UBL Money Market Fund (UMMF) at ‘AA+ (f)’ (Double A Plus (f)). The previous rating action was announced on December 31, 2019. UMMF operates as an open-end money market fund with the objective to provide investors exposure to money market instruments within a low risk portfolio. 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.

Net assets of the fund witness an increase closing at 5b end-June’20 (FY19: 2.7b) As per the Investment Policy Strategy (IPS), the fund is required to invest in instruments having a minimum rating of AA to ensure sound credit quality. Weighted Average Maturity (WAM) of the fund is capped at 90 days, whilst investment in any asset that has time to maturity must not exceed 6 months. Given restrictions on WAM, the fund’s exposure to market risk is expected to remain low. Actual asset allocation of the fund remained in line with the stipulated policy during FY20. Size of the fund significantly increased to Rs. 5.0b (FY19: Rs. 2.7m) at end-FY20. Given the fund’s liquid asset mix, ability 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
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/

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