PACRA Maintains Stability Rating of UBL Cash Fund

UBL Cash Fund ("UBL-CF" or "the Fund") represents a low-risk money market solution designed to provide investors with optimal liquidity and capital preservation through a high-quality portfolio of government securities and money market instruments. The Fund's institutional-scale operations and disciplined investment approach position it as a benchmark liquidity vehicle in Pakistan's financial markets. As of December 2024, the Fund reported Assets Under Management (AUM) of PKR 28.7 billion, reflecting its status as one of Pakistan's largest and most liquid money market funds. The Fund’s asset allocation comprised 52% Treasury Bills, 33% bank deposits and reserve repo transactions, and 15% other low-risk instruments, reflecting a balanced strategy for yield optimization and liquidity management. The Fund exhibits exceptional credit quality with 99% of assets in Government Securities and AAA rated instruments, complemented by minimal exposure to other approved low-risk instruments. This near-sovereign concentration provides substantial protection against credit risk while maintaining the Fund's liquidity objectives. With a Weighted Average Maturity (WAM) of 33 days and duration of just 1 day as of December 2024, the Fund demonstrates minimal sensitivity to credit and interest rate movements. This ultra-short duration profile ranks among the most conservative in the peer universe, providing near-complete insulation against rate volatility while maintaining competitive yields.
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 December 2024, the company’s Assets Under Management (AUM) stand at approximately PKR 216 billion, reinforcing its position as one of the largest asset managers in the country.