Karachi, January 07, 2021 (PPI-OT): VIS Credit Rating Company Limited has upgraded the Fund Stability Rating (FSR) of UBL Liquidity Plus Fund (ULPF) to ‘AA+ (f)’ (Double A Plus (f)) from ‘AA (f)’ (Double A (f)). The previous rating action was announced on December 31, 2019.
ULPF was launched with a mandate to provide competitive returns to unit-holders while maintaining a conservative risk profile and high liquidity. 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 limits exposure to AA rated and above exposures, with exposure to cash and cash equivalents and government securities allowed to the extent of 100% of net assets. Actual asset allocation of the fund was dominated by cash and T-Bills in FY20 with the fund remaining compliant with credit quality stipulations.
The current investment policy limits Weighted Average Maturity (WAM) of the portfolio at 90 days while single asset maturity is limited at 6 months for which the fund remained compliant during the period under review. Net assets of the fund witnessed a multifold growth end-June’20 closing at 19.6b (FY19: 6.8b)
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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