Press Release
VIS Reaffirms Fund Stability Rating of UBL Liquidity Plus 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 factors are modest but may vary slightly from time to time because of changing economic conditions condition. The previous rating action was announced on December 29, 2022.
Launched in June 2009, UBL Liquidity Plus Fund (ULPF) is an open-end money market fund, managed by UBL Fund Managers Limited. The investment objective of the Fund is to provide its unit-holders competitive returns from a portfolio of low-risk, short-duration assets while maintaining high liquidity.
The fund’s size has declined to Rs. 25.8b as of June’23 (June’22: 48.6b). Given that the fund predominantly allocates its investments to government securities, credit risk is deemed low. During FY23, the fund’s Weighted Average Maturity (WAM) also consistently remained below the prescribed threshold of 90 days in accordance with the Investment Policy Statement of the fund.
Since the fund’s unit holder pattern continued to be dominated by unrelated corporates, accounting for 74.8% of the total fund’s size, top 10 investor concentration continued to be on the higher side, though it improved as of June’23 to 47.6% as compared to 56.4% as of June’22. The fund has exceeded its benchmark return while closely trailing its peer group's average return. In relation to its peers, the fund occupies a position within the third quartile.
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
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