Lahore, December 15, 2022 (PPI-OT):UBL Special Savings Fund (or the “Fund”) is an open-end and low-risk profile. The Fund aims to provide a competitive regular return with capital preservation on holding of investment for specified duration and beyond in plan(s) accordingly. The Fund shall offer multiple Allocation Plans, hereafter, investing in authorized investable avenues. The undermentioned plans are currently offered under the Fund: i) UBL Special Savings Plan- I (USSP-I) ii) UBL Special Savings Plan- II (USSP-II) iii) UBL Special Savings Plan- III(USSP-III) iv) UBL Special Savings Plan- IV (USSP-IV) v) UBL Special Savings Plan-V (USSP-V) and vi) UBL Special Savings Plan-VI (USSP-VI). The duration of the Fund is perpetual; however, Allocation Plans launched underline may have a fixed maturity or could be perpetual as well.
UBL-Special Savings Fund Plans-V (USSP-V) is an open-ended capital-protected plan where risk of principal erosion is at low. The objective is to provide a competitive regular return with capital preservation for unit holders who hold their investment for thirty-six (36) Months from commencement of life of plan. The term of the Fund is perpetual. According to investment policy, the plan can invest in PIBs, TDRs and T-bills which is a highly liquid and cannot invest below double AA-rated avenues. The top ten party concentration of the plan is at ~99.7% as end Sep’22, the majority is invested by HNWIs.
Currently, the plan had invested ~57% in single bank rated AA- and ~42.6% in T-bills in the end sep-22. The duration of the Plan was 1-day, limiting the exposure to interest rate risk whereas the WAM of the Fund was 61-days due to investment in T-bills however credit risk is manageable due to investment in govt securities. Capital preservation will be provided for 36 months and beyond, After 36 months capital preservation feature remain intact and only open for subscription for limited period on approval of Commission. However, redemption will be allowed without contingent load on completion of capital preservation period. Going forward, the plan is intended to invest a minimum 25% in Govt securities. Any material changes in the investment policy or the devised rating criteria for the assigned rating would have an impact on the rating.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com