The Pakistan Credit Rating Agency Limited
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Wajeeha Asghar

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PACRA Maintains Stability Rating of UBL Cash Fund

Rating Type Stability Rating
(28-Sep-23 )
(29-Mar-23 )
Action Maintain Maintain
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

UBL Cash Fund (or the Fund) is a low risk profile fund. The objective of the Fund is to generate attractive returns within a low risk portfolio to provide a regular stream of income and easy liquidity to its investors. The assigned rating reflects the strength of the Fund's credit and interest rate risk profile. The allocation of the Fund as of Jun'23 was ~36.7% in T-Bills, around ~45.6% cash invested in bank out of which ~34% invested in AA+ rated avenues while remaining ~11.5% invested in AAA rated avenues. However, the Fund had invested ~16.9% in PIBs and ~0.8% in other avenues at the end Jun’23. The duration of the Fund stood at 1 day at the end Jun’23, limiting the exposure to interest rate risk. The WAM of the Fund stood at 49 days at the end Jun’23, limiting exposure to credit risk. The unit holding pattern of the Fund was ~31.1% representing top ten investor concentration.
Going forward, any Material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
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 14 conventional funds and 9 shariah compliant funds as at end Jun'23 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 152.5bln at end Jun'23.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.