PACRA Maintains the Stability Rating of UBL Cash Fund

UBL Cash Fund ("UCF" or "the Fund") is categorized under a low-risk profile, with the objective of generating attractive returns within a low-risk portfolio to provide a regular stream of income and easy liquidity to its investors. The Fund's strategy prioritizes capital preservation and efficient liquidity management, making it suitable for investors seeking minimal exposure to interest rate movements while maintaining ready access to funds. As of Jun'26, the Fund's Assets Under Management (AUM) stood at PKR 60,991mln, compared to PKR 42,848mln as of Dec'25 (the last review), reflecting an expansion of ~42% over the review period, indicative of strong and growing investor confidence in the Fund's money market offering. In terms of asset allocation, approximately 99% of the portfolio was invested in cash, with the remaining ~1% in other instruments, reflecting a near-exclusively liquid portfolio positioning consistent with the Fund's low-risk money market mandate. Cash placements are maintained with highly rated banking counterparties, providing strong liquidity while remaining within the Fund's stipulated credit quality parameters. From a credit quality perspective, approximately 99% of the Fund's assets were invested in AAA rated instruments, with the remaining ~1% in non-rated exposures. The overall credit profile is considered exceptional and is fully compliant with the assigned rating criteria, with the near-pristine AAA dominated composition providing the highest possible quality anchor to the portfolio and effectively eliminating credit risk as a material concern. The Fund's Weighted Average Maturity (WAM) stood at 1 day as of Jun'26, reflecting virtually zero sensitivity to interest rate movements and reinforcing the Fund's exceptionally strong liquidity position. Meanwhile, the unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~46% of the Fund's total holdings, thereby exposing the Fund to moderate redemption risk; however, the Fund's highly liquid asset allocation and one-day WAM profile provide a meaningful buffer against potential redemption-related liquidity pressure, ensuring the Fund's ability to meet any potential redemption requirements swiftly. In terms of performance, the Fund generated a return of 10.20% during FY26, against a benchmark return of 11.27% and a peer group average of 10.33%, reflecting performance broadly in line with the peer average while trailing the benchmark during the period. This outcome is assessed as broadly consistent with the Fund's conservative, liquidity-first investment approach and ultra-short duration portfolio positioning throughout the review period.
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 rating.

About the Entity
UBL Fund Managers Limited, incorporated in 2001 as a public unlisted company, is one of Pakistan's leading Asset Management and Investment Advisory companies. 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. Mr. Asif Ali Qureshi, CFA, serves as the Chief Executive Officer (CEO) and Director of UBL Asset Management Company Limited. With over 25 years of experience in the financial sector, his expertise spans banking, economic and financial research, investment banking, consulting, teaching, training, and entrepreneurship. The Company’s diverse product slate includes 18 conventional funds and 10 Shariah-compliant funds belonging to all major categories. The assets under management (AUMs) stood at ~PKR 402bln at the end of Jun'26.