PACRA Maintains Stability Rating of UBL Cash Fund

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 Fund will cater to various investment horizons; however, majority of the investment shall be in readily convertible T-Bills, Government Securities, TDRs and commercial papers. The assigned rating reflects the strength of the Fund's credit and interest rate risk profile. The assets allocation of the Fund as of Jun-24 was ~15.70% in T-Bills, ~83.79% of cash, while the remaining ~0.51% was invested in other avenues. The credit quality of the Fund stood at ~96.68% in Govt/AAA rated avenues, ~2.79% in AA and the rest was invested in other rated avenues. The duration of the Fund stood at 1 day at the end Jun'24, limiting the exposure to interest rate risk. The WAM of the Fund stood at 7 days at the end Jun-24, limiting exposure to credit risk. The unit holding pattern of the Fund was ~40.86% representing top ten investor concentration; exposing the Fund to a moderate level of redemption pressure.
Going forward, any material changes in the investment policy and/or compliance with the 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. Imran Sarwar, has over 25 years of leadership, management, strategy and risk experience in banking. The Company’s diverse product slate includes 16 conventional funds and 8 shariah compliant funds as at end Jun'24 belonging to all major categories. The Company is also offering four voluntary pension schemes in the conventional and shariah compliant category. The assets under management stood at ~PKR 216bln at end Jun'24.