JCR-VIS Credit Rating Company Limited has reaffirmed the Capital Protected Fund (CPF) Rating of United Bank Limited (UBL) Capital Protected Fund-I (UCPF-1) at 'AA+(cpf)' (double A plus (cpf)). The rating reflects very high probability of timely repayment of principal investment.
UCPF-I was launched in April 2008 as a closed-end fund with a life of three years (maturity: April 15, 2011). Capital protection segment primarily comprises fixed-return TDR with UBL and a smaller amount placed with another bank. The segment also includes investment in government securities to the extent of 13 per cent of net assets.
These collectively represented 83 per cent of net assets at the end of September 2010 and return thereon is expected to enable the fund to meet its objective of principal protection at maturity. Credit risk arising from these exposures is considered low.-PR