Karachi, VIS Credit Ratings Company Ltd. has reaffirmed the Fund Stability Rating of UBL Liquidity Plus Fund at ‘AA+(f)’, indicating a high degree of stability in its Net Asset Value and acknowledging modest risks that may shift with changing economic conditions. This rating update follows an earlier assessment on December 29, 2022.

According to VIS Credit Rating Company Limited, UBL Liquidity Plus Fund, managed by UBL Fund Managers Limited since June 2009, is an open-end money market fund. Its primary objective is to offer competitive returns from a low-risk, short-duration asset portfolio, while ensuring high liquidity for its unit-holders.

The fund experienced a decrease in size to Rs. 25.8 billion as of June 2023, down from Rs. 48.6 billion in June 2022. With its investment focus predominantly on government securities, the fund's credit risk remains low. Throughout fiscal year 2023, the fund’s Weighted Average Maturity consistently stayed below the 90-day limit set by its Investment Policy Statement.

The fund's unit holders are primarily unrelated corporates, comprising 74.8% of the total fund size. Although the concentration of the top 10 investors remains high, there was an improvement, decreasing to 47.6% in June 2023 from 56.4% in June 2022. In terms of performance, the fund surpassed its benchmark return but slightly lagged behind the average return of its peer group, positioning it within the third quartile compared to its peers.