Press Release

VIS Reaffirms Fund Stability Rating of UBL Money Market Fund

Karachi, December 29, 2023: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) at ‘AA+(f)’ (Double A Plus (f)). The medium to long-term rating of ‘AA+’ denotes High degree of stability in Net Asset Value; Risk is modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on December 30, 2022.

Launched in October 2010, UBL Money Market Fund (UMMF) is an open-end money market fund, managed by UBL Fund Managers Limited. The objective of the fund is to generate competitive returns within a low-risk portfolio to provide a regular stream of income and easy liquidity to its investors by investing a major chunk of the portfolio in short-term government securities.

Rating factors in strong growth in the fund’s size, sizeable liquid assets, and sound credit quality. The fund’s Asset under Management (AUMs) has increased to Rs. 8.9b as of June’23 (June’22: 3.5b). UMMF complied with the minimum credit rating for investments outlined in the Offering Document (OD), though the fund allocation in cash remained below the minimum threshold of 20% during FY23. The fund also adhered to the Weighted Average Maturity (WAM) in accordance with the stipulation outlined in OD.

The fund’s unit holder pattern is dominated by retail investors accounting to 95.3% of the total AUMs while the top 10 investor concentration remains moderate at 28.4% as of June’23. The fund is placed in the fourth quartile relative to peers while underperforming against its peer averages and benchmark return during FY23. However, the fund has outpaced it benchmark return during Q1’FY24.

For further information on this ratings announcement, please contact Mr. Muhammad Amin Hamdani (Ext: 217) or the undersigned (Ext: 208) on 021-35311861-64 or email at info@vis.com.pk.





Syed Asif Ali
Executive Director


Applicable Rating Criteria: Fund Stability
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .