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The Pakistan Credit Rating Agency Limited
Press Release

Date
19-Nov-18

Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Assigns Initial Stability Rating to UBL Cash Fund

Rating Type Stability Rating
Current
(19-Nov-18)
Action Initial
Long Term AA+(f)
Short Term -
Outlook Stable
Rating Watch -

The rating reflects the fund's projected very strong credit risk profile emanating from the investment strategy to invest in high credit quality investment avenues with sound liquidity. The projected asset allocation of the fund includes 35% Bank Deposits in 'AA and above rated' banks, 15% Placements with DFIs 'rated AA and above' and 50% in short-term government securities subject to limits as defined in OD. The fund is projected to maintain its duration below 45 days resulting in very low exposure to interest rate volatility.
The unit holding pattern of the fund would be concentrated with ~ 80% institutional and retail investors, where one investor can only acquire up to 10% of the total units of the fund. Meanwhile, the group's own investment would represent ~ 10%-20% in total portfolio.

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 firm in Pakistan having AUMs of ~PKR 71bln at end June 2018. 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 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.Azhar Hamid, is a banker having more than four decades of banking experience. The company’s diverse product slate includes 20 open-end funds as at Sep-18 belonging to all major categories. The company is also offering two voluntary pension schemes in the conventional and shariah-compliant category.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.