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-UBL Capital Protected Fund II gets AA+(cpf) rating by JCR-VIS.

BANKING AND CREDIT NEWS-January 6, 2011--UBL Capital Protected Fund II gets AA+(cpf) rating by JCR-VIS(C)2011 M2 COMMUNICATIONS http://www.m2.com

6 January 2011 - Pakistan's JCR-VIS has set an AA+(cpf) Capital Protected Fund (CPF) rating to UBL Capital Protected Fund II.

The agency issued the following press release:

Karachi, January 05, 2011: JCR-VIS Credit Rating Company Limited has assigned Capital Protected Fund (CPF) Rating of 'AA+(cpf)' (Double A Plus (cpf)) to UBL Capital Protected Fund II (UCPF-II). The rating reflects very high probability of timely repayment of principal investment.

UCPF-II was launched by UBL Fund Managers Limited in May 2010. Structured as an open-end capital protected fund, UCPF-II has a life of two years (maturity: May 23, 2012). The fund has placed nearly 83% of net assets in term deposits with United Bank Limited (UBL), with return locked in for the capital protection period. Also included in the capital protection segment is a smaller amount placed with another bank. Credit risk emanating from these exposures is considered low and return on deposits ensures capital protection at the time of maturity.

The fund is also exposed to market risk on account of its equity holdings. While this may expose the NAV to volatility over the life of the fund, it is not expected to have any impact on the ability of the fund to ensure capital protection. In relation to its stated benchmark, the fund has underperformed in terms of year-to-date return.

Largest investor and seed capital provider of the fund is UBL itself. Other investors have relatively diversified single party holding. Back-end load of 5% acts as a disincentive for redemptions.

((Comments on this story may be sent to info@m2.com)).END.PUB430>PDJanuary 6, 2011>JNBANKING AND CREDIT NEWS.PRICEDATENOT APPLICABLE.DAY

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Publication:M2 Banking & Credit News (BCN)
Date:Jan 6, 2011
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