PACRA Assigns Initial Rating to UBL Special Savings Plan – III under UBL Special Savings Fund (USSP-III)

UBL Special Savings Fund (or the "Fund") is an open-end and low-risk profile. The Fund aims to provide a competitive regular return with capital preservation on holding of investment for specified duration and beyond in plan(s) accordingly. The Fund shall offer multiple Allocation Plans, hereafter, investing in authorized investable avenues. The undermentioned plans are currently offered under the Fund: i) UBL Special Savings Plan- I (USSP-I) ii) UBL Special Savings Plan- II (USSP-II) iii) UBL Special Savings Plan- III(USSP-III) iv) UBL Special Savings Plan- IV (USSP-IV) v) UBL Special Savings Plan-V (USSP-V) and vi) UBL Special Savings Plan-VI (USSP-VI). The duration of the Fund is perpetual; however, Allocation Plans launched underline may have a fixed maturity or could be perpetual as well.
UBL-Special Savings Fund Plans-III (USSP-III) is an open-ended capital-protected plan where risk of principal erosion is at low. The objective is to provide a competitive regular return with capital preservation for unit holders who hold their investment for thirty six (36) Months from commencement of life of plan. The term of the Fund is perpetual. According to investment policy, the plan can invest in PIBs, TDRs and T-bills which is a highly liquid and cannot invest below double AA-rated avenues. The top ten party concentration of the plan is at ~66% as end Sep'22, the majority is invested by HNWIs.
Currently, the plan had invested ~96.4% in single bank rated AA- at the end of Sep-22. The duration and the WAM of the Plan stood at 1 day, limiting the exposure to interest rate and credit risk at the end Sep-22. Capital preservation will be provided for 36 months and beyond, After 36 months capital preservation feature remain intact and only open for subscription for limited period on approval of Commission. However, redemption will be allowed without contingent load on completion of capital preservation period. Going forward, the plan is intended to invest a minimum 25% in Govt securities.
Any material changes in the investment policy or the devised 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 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 twenty 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 13 conventional funds and 9 shariah compliant funds as at end Jun'22 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 131bln at end Sep'22.