Karachi, VIS Credit Ratings Company Ltd. has reaffirmed the Fund Stability Rating of UBL Money Market Fund at ‘AA+(f)’, reflecting a high degree of stability in Net Asset Value with modest, variable risk factors due to economic changes. This rating was last reviewed on December 30, 2022.

According to VIS Credit Rating Company Limited, UBL Money Market Fund, managed by UBL Fund Managers Limited since October 2010, aims to generate competitive returns with a low-risk portfolio. The fund focuses on providing regular income and easy liquidity to its investors, primarily through investments in short-term government securities.

The fund has seen a marked increase in its Assets under Management, reaching Rs. 8.9 billion as of June 2023, up from Rs. 3.5 billion in June 2022. UMMF has adhered to the minimum credit rating for investments as outlined in its Offering Document, although its cash allocation remained below the 20% threshold during FY23. Additionally, the fund complied with the Weighted Average Maturity requirements as stipulated in the document.

Retail investors dominate the fund’s unit holder pattern, representing 95.3% of the total Assets under Management. The concentration of the top 10 investors is moderate, standing at 28.4% as of June 2023. Despite being placed in the fourth quartile compared to its peers, the fund underperformed against its peer averages and benchmark return during FY23. Notably, however, it surpassed its benchmark return in the first quarter of FY24.