PACRA Maintains Stability Rating of UBL Cash Fund

UBL Cash Fund (“UBL-CF” or “the Fund”) is structured as a low-risk money market fund, aimed at providing investors with consistent liquidity and capital preservation through a portfolio concentrated in government securities and money market instruments. The Fund’s size, combined with its disciplined strategy, positions it as one of the established liquidity vehicles in Pakistan’s financial markets. As of June 2025, the Fund reported Assets Under Management (AUM) of PKR 14 billion. The asset allocation was heavily skewed towards cash placements (~78%) and Treasury Bills (~19%), with the remaining exposure in other approved short-term instruments. This conservative positioning highlights the Fund’s focus on liquidity and risk containment. The credit quality of the portfolio remains high, with approximately 98% of investments placed in Government Securities and AAA-rated avenues. The Weighted Average Maturity (WAM) of 7 days reflects limited exposure to both credit and interest rate risks. Such a maturity profile provides resilience against market volatility and enhances the Fund’s ability to meet redemptions promptly. The investor concentration profile shows that the top 10 investors hold around 78% of the Fund’s outstanding units. While this concentration elevates potential redemption risk, the Fund’s short maturity structure and liquid asset base provide it with sufficient flexibility to manage investor flows without undue pressure on the portfolio.
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 Pakistan’s premier asset management and investment advisory firms. Licensed and regulated by the Securities and Exchange Commission of Pakistan (SECP) under the Non-Banking Finance Companies (NBFC) Regulations, the company operates with a strong institutional backing, being ~98% owned by United Bank Limited (UBL), while the remaining shares are held by private individuals. The company’s Board of Directors consists of six seasoned professionals, including the CEO, Asif Ali Qureshi, having been appointed on July 26, 2024, after Mr. Yasir Qadri's resignation. With over 25 years of diverse financial sector experience, Mr. Qureshi has worked in banking, investment, research, consulting, and education, while also co-founding two brokerage firms and a financial database portal. His extensive expertise underscores his leadership in the industry. UBL Fund Managers offers a diverse portfolio of investment solutions, including 16 conventional funds and 8 Shariah-compliant funds (as of the latest reporting period), spanning various asset classes to cater to different investor needs. Additionally, the company provides four voluntary pension schemes, available in both conventional and Islamic categories, further strengthening its footprint in Pakistan’s retirement savings market. As of August 2025, the company’s Assets Under Management (AUM) stand at approximately PKR 329 billion, reinforcing its position as one of the largest asset managers in the country.