PACRA Maintains Stability Rating of Atlas Sovereign Fund
|Rating Type||Stability Rating|
Atlas Sovereign Fund ("ASF" or the "Fund") reflects the fund's moderate risk profile. The investment objective of the Fund is to provide unit-holders competitive returns with medium risk and high liquidity by investing in Government Securities and Debt Instruments. The assigned rating reflects the Fund's moderate credit and interest rate risk profile emanating from its investment strategy. The Fund had allocated ~1.38% in banks, ~53.82% in T-Bills, ~40.32% in PIBs, ~3.52% in Corporate Sukuks while remaining was invested in Others, at the end Dec'22. Due to higher investments in PIBs, the WAM of Fund stood at 563 days in the end Dec-22, exposing the Fund to credit risk and mark-to-market loss. While the duration of the Fund stood at 176 days in the end Dec'22, exposing the Fund to interest rate risk. The Fund remained compliant with the rating criteria for the assigned ratings. The unit holding pattern of the Fund were ~98.94% representing top ten investor concentration; keeping high level of redemption pressure.
Going forward, the material changes in the Fund's asset allocation strategy, impacting its credit quality and/or average duration, would affect the rating.
Atlas Asset Management Limited, incorporated in August 2002 and a part of Atlas Group, is a wholly owned (100%) subsidiary of Shirazi Investments (Pvt.) Limited - the holding company of the Group. Atlas Group, established in 1962, is one of the well-known business groups of the Country with a presence in manufacturing, financial, and trading sectors.
AAML's seven-member board of directors comprises four representatives of Atlas Group, two independent directors and the CEO. The CEO of the Company, Mr. Muhammad Abdul Samad, has completed the Advanced Management Program from INSEAD and holds postgraduate qualifications from the University of Karachi and the Southeastern University, he also holds certification from IFMP. He has been associated with the Company for over seventeen years and held C-Suite positions for over a decade. He has a significant Board experience, where he has served as a director on the board of nineteen listed companies, including Atlas Battery Limited, Lucky Cement, Berger Paints, Mirpurkhas Sugar, amongst others along with vast experience of the mutual fund industry. The Company is currently managing five conventional and five shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 49bln at end Dec'22.