PACRA Maintains Stability Rating of UBL Cash Fund

Lahore, November 19, 2019 (PPI-OT): The rating reflects fund’s good credit quality and sound liquidity profile. The fund’s low risk profile emanates from its investment policy of maintaining a sizable proportion of placements with commercial banks having ‘AAA’ rating. At end-Sep’19, 100% of the fund’s assets were placed with ‘AAA’ rated bank. The fund is projected to maintain its duration within 90 days, resulting in very low exposure to interest rate volatility.

Going forward, the fund intends to take exposure in short-term government securities and may actively reallocate funds between different investment avenues including commercial banks, to gain benefit from yield curve movements, or to capitalize on higher Banks’ rate opportunities. Material changes in the fund’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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