PACRA MAINTAINS MUTUAL FUND RATING OF

UNIT TRUST OF PAKISTAN (UTP)

 

Lahore: May 24, 2004

The Pakistan Credit Rating Agency (PACRA) has maintained the mutual fund rating of ‘AA(f)' (double A) for Unit Trust of Pakistan (UTP). The rating denotes the ability of the Fund to consistently outperform its peers with strong capacity to respond to future opportunities or stress situations.

UTP's rating reflects strong profitability and substantial investment revaluation increment alongwith the management's ability to identify and benefit from the emerging opportunities while maintaining effective fund management policies. The rating also recognizes growth in the Fund size with an increasing proportion of equity investments, thereby exposing the Fund to an enhanced market volatility risk. However, in pursuance of the Fund's investment policies, the composition of assets changes from time to time in line with changing market trends. Moreover, the substantial unrealized gain provides a cushion against any significant adverse movement in the market.