PACRA today maintained the stability rating of UBL Cash Fund (UBL-CF), reaffirming its AA+(f) long-term rating and stable outlook.
The agency’s assessment underscores the fund’s conservative investment approach, focusing on capital preservation and liquidity. UBL-CF operates as a low-risk money market fund, primarily investing in government securities and short-term instruments. With assets under management reaching PKR 14 billion as of June 2025, the fund maintains a strong presence in Pakistan”s financial landscape.
The portfolio allocation reveals a substantial concentration in cash placements (approximately 78%) and Treasury Bills (around 19%), reflecting the fund”s emphasis on readily available funds.
The fund”s commitment to high credit quality is evident in its investment strategy, with about 98% of its holdings in government securities and AAA-rated instruments. A weighted average maturity of seven days minimizes exposure to interest rate and credit fluctuations, bolstering the fund”s capacity to withstand market instability and handle investor withdrawals efficiently.
While a significant portion (roughly 78%) of the fund”s units are held by the top 10 investors, the short maturity profile and liquid asset base provide sufficient maneuverability to manage potential redemption pressures effectively. PACRA notes that any substantial alterations to the investment strategy or deviations from the rating criteria could influence the assigned ratings.