PACRA Maintains Stability Rating of UBL Cash Fund
|Rating Type||Stability Rating|
UBL Cash Fund (or the Fund) is a very low risk profile Fund. The assigned rating reflects the strength of the Fund's credit and interest rate risk profile. The Fund had allocated ~99% in single bank rated AAA, giving rise to concentration risk. The duration and the WAM of the Fund stood at 8 days at the end Jun’22 (Dec’21: 7 days), limiting exposure to interest rate and credit risk. The unit holding pattern of the Fund was ~79.6% representing top ten investor concentration.
Going forward, material changes in the planned asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
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 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 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 137bln at end Jun'22.