PACRA Maintains Stability Rating of UBL Cash Fund
|Rating Type||Stability Rating|
The rating reflects fund's good credit quality and sound liquidity profile. The fund's low risk profile emanates from its investment policy of maintaining a sizable proportion of placements with commercial banks having 'AAA' rating. At end-Sep'19, 100% of the fund's assets were placed with 'AAA' rated bank. The fund is projected to maintain its duration within 90 days, resulting in very low exposure to interest rate volatility.
Going forward, the fund intends to take exposure in short-term government securities and may actively reallocate funds between different investment avenues including commercial banks, to gain benefit from yield curve movements, or to capitalize on higher Banks' rate opportunities. Material changes in the fund's asset allocation strategy, impacting it's credit quality and/or exposure to interest rate risk, would affect the rating.
UBL Fund Managers Limited, incorporated in 2001 as a public unlisted company, is one of the leading Asset Management and Investment Advisory company in Pakistan having AUMs of ~PKR 57.5 bln at end Sep 2019. It is licensed by the Securities and Exchange Commission of Pakistan (SECP) to carry out these services under the Non-Banking Finance Companies Regulations. The company is ~98% owned by United Bank Limited, while the remaining stake belongs to individuals.
The company’s Board of Directors comprises seven members including the CEO. The CEO, Mr. Yasir Qadri, is associated with the asset management industry for more than sixteen years. The board’s Chairman, Mr. Azhar Hamid, is a banker having more than four decades of banking experience. The company’s diverse product slate includes 12 conventional funds and 7 shariah compliant funds as at Sep-19 belonging to all major categories. The company is also offering two voluntary pension schemes in the conventional and shariah-compliant category.