Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its stability rating for the UBL Cash Fund, underscoring its role as a low-risk money market solution with significant liquidity and capital preservation potential. The fund is noted for its institutional-scale operations and disciplined investment strategy, positioning it as a benchmark liquidity vehicle in Pakistan's financial markets.

As of December 2024, UBL Cash Fund reported Assets Under Management (AUM) of PKR 28.7 billion, marking it as one of the largest and most liquid money market funds in the country. The fund's asset allocation includes 52% in Treasury Bills, 33% in bank deposits and reserve repo transactions, and 15% in other low-risk instruments.

The fund maintains exceptional credit quality, with 99% of its assets in government securities and AAA-rated instruments. This concentration provides substantial protection against credit risk while upholding the fund's liquidity objectives.

With a Weighted Average Maturity of 33 days and a duration of just one day as of December 2024, the fund shows minimal sensitivity to credit and interest rate movements. This ultra-short duration profile is among the most conservative in its peer group, offering insulation against rate volatility while maintaining competitive yields.

PACRA notes that any significant changes in investment policy or compliance with rating criteria could impact the fund's ratings.