PACRA Maintains Stability Rating of UBL Cash Fund
|Rating Type||Stability Rating|
The rating reflects the strength of the fund's credit and interest rate risk profile. The fund's low risk profile emanates primarily from its investment policy of maintaining a size-able proportion of placements with Commercial Banks having 'AAA' rating. At end Dec-19, ~98% of the funds' assets were placed with 'AAA' rated Banks. The fund is projected to maintain its duration within 90 days, resulting in very low exposure to interest rate volatility. Fund's unit holding pattern is highly concentrated with top 10 investors representing 100% of the net assets.
Going forward, the fund intends to maintain its asset allocation towards higher rated banks and may take exposure in short-term government securities in order to gain benefit from yield curve movements. Material changes in the plan's asset allocation strategy, impacting its 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. 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 end Dec’19 belonging to all major categories. The Company is also offering two voluntary pension schemes in the conventional and shariah compliant category. The assets under management stood at ~PKR 62.8bln at end Dec’19.