JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the Fund Stability Rating of United Growth & Income Fund (UGIP) from 'BBB+(f)' (Triple B Plus (f)) to 'BBB-(f)' (Triple B Minus (f)). The rating change incorporates the increasing proportion of high-risk assets in the investment portfolio. Fund size has consistently declined, with better quality fixed-income instruments with relatively high marketability liquidated to inert redemptions.
The management is expecting on-going restructuring in case of one major exposure to bear positively on the fund's quality of assets and also returns. The results of this restructuring exercise and its impact on exposures held by the fund will be closely tracked. Largest investor in the fund is United Bank Limited (UBL), holding almost three-fourths of outstanding units.-PR