JCR-VIS Credit Rating Co Ltd (JCR-VIS) has assigned initial Fund Stability Rating of 'AA-(f) (Double A Minus (f)) to UBL Islamic Savings Fund (UISF). UISF is an open-end income fund permitted to invest in Shari'ah-compliant fixed-income avenues. Credit arid market risk exposures of the fund are within manageable limits. The fund will deploy at least 50 percent of assets in government-issued Ijarah Sukuks.
A major portion of the remaining assets are subject to a minimum rating of 'AA-' and not more than 15 percent will be invested in securities rated lower than that. Moreover, exposure to market risk is limited with even long term Ijarab Sukuks having maximum rate reset period of 6 months.
Liquidity profile of UISF is considered sound on account of the marketability of assets held, Since 25 percent of the fund has to be maintained in near cash assets, adequate cushion is expected to be available to meet redemptions. However, large institutional investors currently hold a major portion of the outstanding units, and the liquidity position could benefit from a larger retail investor base.-PR