Press Release

VIS Reaffirms Fund Stability Rating of UBL Money Market Fund

Karachi, December 30, 2022: VIS Credit Rating Company Limited has reaffirmed Fund Stability Rating (FSR) of UBL Money Market Fund (UMMF) at ‘AA+ (f)’ (Double A Plus (f)). FSR of ‘AA+ (f)’ (Double A plus (f)) denotes high degree of stability in NAV. Risk is modest but may vary slightly from time to time because of changing economic conditions. The previous rating action was announced on January 13, 2022.

UMMF operates as an open-end money market fund with the objective to provide investors exposure to money market instruments within a low risk portfolio. At end-FY22, fund size increased slightly to Rs. 3.5b (FY21: Rs. 3.1b). With higher interest rates in the ongoing year and greater investor participation for interest rate securities, the size of the portfolio grew to Rs. 5.3b at end-Oct’22.

Credit quality of the fund was maintained with the Investment Policy Statement (IPS) and VIS criteria with fund’s major holding (85%) largely concentrated in ‘AAA’ rated exposures with asset allocation largely vested in short term Government securities and cash holdings. Liquidity profile also remains sound with high proportion of liquid assets indicating low redemption pressure. Retail AUMs comprise a sizeable 95% of the AUM at end-June’22 with modest top 10 investor concentration at 36%. The fund reported return higher than the benchmark return; however, still being below the peer average. In terms of ranking, the fund was in the fourth quartile. Improvement in performance metrics will be important for rating, going forward.

For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext: 207) at (021) 35311861-66 or email at info@vis.com.pk.






Sara Ahmed
Director

Applicable Rating Criteria: Fund Stability Ratings (December 2020)
https://docs.vis.com.pk/docs/FundstabilityRating.pdf

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