With Securities and Exchange Commission of Pakistan (SECP) recent decision to mark down Term Finance Certificates (TFC) prices by five percent to 30 percent, investment in money market/income funds has become extremely attractive for both individual and institutional investors. This was stated by Mir Muhammad Ali, CFA - CEO of UBL Fund Managers Limited in an official press statement.
Mir further commented that the portfolio quality of Income Funds managed by UBL Fund Managers, namely United Growth and Income Fund (UGIF), United Money Market Fund (UMF) and United Islamic Income Fund (UIIF) consisted of high quality investment grade TFCs, where there was no impairment and the funds continue to be serviced on time.
By bringing down the value of the portfolio through a book entry only and without the carning stream from these TFCs being affected, investors in these funds can expect to get a much higher return in the range of 14.5 percent p.a. to 15 percent p.a. This return effectively is much higher as it is tax-free under applicable tax law.
UBL Fund Managers due to its prudent fund management, efficient liquidity management and strong risk management and compliance remains in the forefront in providing high quality invest merit management services to its investors.
Mir stated that strict adherence to our principle of 'Safely First' in managing income/money market funds ensures that investors' money is invested diligently and is available as and when required by them. He also mentioned that UBL Fund Managers had met all redemption requests from its investors.-PR
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