Karachi: UBL Fund Managers Limited has announced that the UBL Growth and Income Fund (UGIF) achieved impressive performance for the fiscal year ending June 30, 2024, delivering a total return of 27.59% per annum. This achievement substantially exceeds its benchmark, which posted a return of 21.62% over the same period.
UGIF, an open-end Aggressive Fixed Income Fund, currently manages assets totaling PKR 3.35 billion, reflecting significant growth from PKR 1.19 billion the previous year. The fund's substantial asset growth is attributed to aggressive capital gains and robust investment strategies that focus on medium to long-term fixed income instruments and short-tenor money market instruments. The primary goal remains to offer superior, long-term, risk-adjusted returns while preserving capital.
According to information available from the Pakistan Stock Exchange (PSX), the fund's strategy for the past fiscal year included a major shift towards liquidity, with cash holdings increasing to 75% of the asset allocation from 21% the previous year. This move was likely a tactical adjustment reflecting market conditions and fund management strategies aiming to capitalize on high short-term interest rates.
Moreover, the fund adjusted its asset allocation significantly, reducing its investment in Term Finance Certificates and Sukuks from 19% to 8% and maintaining moderate exposure to Treasury Bills and PIB Floater. This strategic shift helped the fund navigate the volatile market environment effectively.
Despite the challenging economic climate, UGIF has continued to perform well, thanks in part to the management skills of UBL Fund Managers Limited and their adherence to a disciplined investment approach. The fund's successful strategy and remarkable performance highlight its commitment to delivering value to its investors, providing a strong testament to the fund's management quality and operational excellence.
UGIF's ongoing success is anticipated to attract further investment as it continues to offer competitive returns and maintains a strong commitment to its long-term investment objectives.