Karachi, VIS Credit Ratings Company Ltd. has reaffirmed the Fund Stability Rating of Al Ameen Islamic Cash Fund at ‘AA+(f)’, indicating a high degree of stability in its Net Asset Value. This rating, announced following a previous assessment on December 29, 2022, reflects modest risk that may fluctuate with economic changes.

According to VIS Credit Rating Company Limited, Al Ameen Islamic Cash Fund, managed by UBL Fund Managers Limited since September 2012, is an open-ended, Shariah-compliant money market fund. Its primary goal is to provide high liquidity and competitive returns, emphasizing capital preservation by investing in low-risk, liquid Shariah-compliant instruments.

The fund has seen a significant increase in Assets under Management, reaching Rs. 17.2 billion as of June 2023, up from Rs. 7.8 billion in June 2022. It has consistently adhered to the asset allocation parameters and minimum credit quality rating set out in its offering document. Additionally, the fund has complied with the stipulated Weighted Average Maturity of 90 days.

Despite a decrease in the retail proportion of unit holders to 60% as of June 2023 (down from 71% in June 2022), the concentration of the top 10 unit holders rose to 41% in June 2023, from 33% in June 2022. Nevertheless, the fund maintains a strong liquidity profile, with the majority of assets allocated in cash. In comparison to its peers, the fund is placed in the fourth quartile and has underperformed in average return, though it has surpassed its benchmark return.