The Security and Exchange Commission Pakistan (SECP) passed a directive on November 5, 2008, according to which all the debt securities including Term Finance Certificates (TFC's) Sukuks of all Asset Management Companies are to be valued downwards based on a methodology enforced by the SECP.
This is a short-term measure taken by the SECP to address the issue of absence of liquidity and price discovery in the debt markets and will consequently be in effect till January 12, 2009. After which Term Finance Certificates (TFCs) are expected to be reset back to market pricing based on a methodology to be finalised by the Regulator.
In light of the present scenario, it is advised that investors hold their investments, if not limed with an immediate need for liquidity and reassess their investment decision after January 12, 2009. This situation offers a favourable window of opportunity for investors to benefit from higher tax-free yields on fresh investments. Thus, It is an opportune time for investors with access to excess liquidity to take fresh positions in fixed income funds at discounted Net Asset Values (NAVs).
In view of the current scenario UBL Fund Managers, CEO, Mir Muhammad Ali said 'Our investors always come first and therefore need to rest assured that UBL lurid Managers will take all necessary measures to safeguard its investors' interests. UBL Fund Managers will continue to serve its investors with the best possible fund management services and during this period will also facilitate its investors by keeping them posted on the expected current yield on a daily basis via email.-PR