Press Release

VIS Reaffirms Fund Stability Rating of UBL Money Market Fund

Karachi, January 09, 2025: VIS Credit Ratings Company Ltd. (VIS) has reaffirmed Fund Stability Rating (FSR) at ‘AA+(f)’ (Double A Plus (f)). The medium to long-term fund 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 29, 2023.

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.

Assigned rating factors in asset allocation of the Fund, which is largely aligned with the parameters in the offering document, with instances of non-compliance observed in certain months. Around half of the investments were represented by T-Bills, with remaining allocations to cash and PIB-Floaters. Assigned rating also reflects the Fund’s credit quality, with exposures predominantly allocated to government securities and AAA rated assets, in accordance with the stipulations outlined in the offering document, which requires investments in securities rated AA and above, indicative of sound credit quality.

The weighted average time to maturity (WAM) of the Fund remained in line with the defined threshold in the offering document. Liquidity profile of the Fund is considered sound in view of proportion of the liquid assets held by the Fund. The Fund’s clientele is dominated by retail investors. Additionally, client concentration risk is considered low. The Fund's returns were slightly below benchmark returns; however, they have outperformed the benchmark since June 2024.

For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria: Fund Stability Ratings
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 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .