PACRA Maintains Stability Rating of UBL Cash Fund

Lahore, October 26, 2020 (PPI-OT):The rating reflects the strength of the fund’s credit and interest rate risk profile. The fund’s low risk profile emanates primarily from its investment policy of maintaining a size-able proportion of placements with Commercial Banks having ‘AAA’ rating. At end Jun-20, ~91% of the funds’ assets were placed with ‘AAA’ rated Banks. The lower duration of the fund is resulting in very low exposure to interest rate volatility. Fund’s unit holding pattern is highly concentrated with top 10 investors representing 94% of the net assets.

Going forward, the fund intends to maintain its asset allocation towards higher rated banks and may take exposure in short-term government securities in order to gain benefit from yield curve movements. Material changes in the plan’s asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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