Karachi, VIS Credit Ratings Company Ltd. has reaffirmed the Fund Stability Rating of UBL Government Securities Fund at ‘AA(f)’, reflecting a high degree of stability in Net Asset Value with modest risk that may vary due to economic conditions. This follows the previous rating action on December 29, 2022.

According to VIS Credit Rating Company Limited, UBL Government Securities Fund, managed by UBL Fund Managers Limited since July 2011, is an open-end income fund focused on generating competitive returns with minimal risk through primary investments in Government Securities.

The fund’s Assets under Management declined to Rs. 914 million as of June 2023, from Rs. 1.1 billion in June 2022. It has occasionally breached asset allocation limits, which mandate a minimum of 70% investment in government securities and a 30% cash maintenance requirement as per the Investment Policy Statement. Despite these breaches, the fund complied with the minimum credit quality rating requirement of ‘AA-’. With a significant portion of its investments in government securities, 73.3% of which are ‘AAA’ rated, the fund’s credit quality is considered strong.

UGSF has consistently adhered to a maximum Weighted Average Maturity of 4 years, in line with its IPS. The concentration of the top 10 investors is reported at 42% as of June 2023. Retail investors make up more than 82% of the fund's unit holders. However, the fund's return fell short of both its benchmark and the average return of its peers during FY23, placing it in the second quartile relative to its peers.