Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the stability rating of UBL Cash Fund (UBLCF), a low-risk investment vehicle, highlighting its strong liquidity position and substantial growth in assets under management. As of December 2025, the fund's assets increased significantly to PKR 42 billion from PKR 14 billion in June 2025, demonstrating enhanced investor confidence.
According to the Pakistan Credit Rating Agency Limited, the fund's asset allocation strategy is highly liquid, with about 92% invested in cash, 3% in T-Bills, and the remainder in other short-term instruments. The credit quality of the fund remains robust, with 98% of assets in government securities and AAA-rated instruments. The fund's weighted average maturity is six days, indicating minimal exposure to interest rate and credit risks.
Despite a calendar year-to-date return of 10.48%, slightly below the benchmark return of 11.07%, the fund's performance aligns with market yields. Concentration is evident, with the top 10 investors holding 85% of total assets; however, the presence of pension funds, which hold 13% of total assets, adds stability. The fund's short weighted average maturity and liquid cash placements ensure adequate liquidity to meet redemption needs promptly. Future rating considerations will depend on any changes in investment policy or adherence to rating criteria.
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