PACRA Upgrades the Stability Rating of UBL Cash Fund

UBL Cash Fund (“UBLCF” or the “Fund”) is a low-risk investment vehicle designed to offer investors an optimal balance of competitive returns, regular income, and high liquidity through a conservative strategy focused on capital preservation. As of Dec’25, the Fund’s Assets Under Management (AUM) stood at PKR 42bln, marking a substantial increase from PKR 14bln as of Jun'25 (the last review), demonstrating strong investor confidence and improved market positioning within the money market fund category. In terms of asset allocation, approximately 92% of the portfolio was invested in Cash, ~3% in T-Bills, ~2% in PIB-Floaters, ~2% in placements with Banks/DFIs, and the remaining in other avenues. The allocation reflects a highly liquid strategy with predominant exposure to short-term instruments. From a credit quality perspective, ~98% of the assets were invested in Government Securities and AAA rated instruments, ~1.5% in AA rated instruments, with the remainder in others, indicating a strong credit profile consistent with the Fund’s low-risk mandate. As of Dec’25, the Fund’s Weighted Average Maturity (WAM) stood at 6 days, signifying minimal exposure to interest rate and credit risk and reinforcing the Fund’s strong liquidity position. The unit holding pattern reflects concentration, with the top 10 investors accounting for ~85% of total holdings; however, ~13% of the Fund is held by pension funds, which are typically more stable in nature. Moreover, potential redemption pressures are mitigated by the Fund’s very short WAM and highly liquid cash placements, constituting approximately 94% of the portfolio, thereby ensuring sufficient liquidity to meet redemption requirements in a timely manner. In terms of performance, the Fund delivered a calendar year-to-date return of 10.48% as of Dec’25, compared to the benchmark return of 11.07%. While marginally below the benchmark, the Fund’s return remains broadly aligned with market yields, supported by its conservative asset allocation and strong credit quality. The rating upgrade incorporates the Fund’s enhanced scale, sustained strong liquidity metrics, and maintenance of high credit quality within its asset allocation.
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 rating.

About the Entity
UBL Fund Managers Limited, incorporated in 2001 as a public unlisted company, is one of Pakistan's leading Asset Management and Investment Advisory companies. 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. Mr. Asif Ali Qureshi, CFA, serves as the Chief Executive Officer (CEO) and Director of UBL Asset Management Company Limited. With over 25 years of experience in the financial sector, his expertise spans banking, economic and financial research, investment banking, consulting, teaching, training, and entrepreneurship. The Company’s diverse product slate includes 18 conventional funds and 10 Shariah-compliant funds belonging to all major categories. The assets under management (AUMs) stood at ~PKR 374bln at the end of Dec'25.