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The Pakistan Credit Rating Agency Limited
Press Release

Date
11-Dec-18

Analyst
Muhammad Usman
muhammad.usman@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of Atlas Sovereign Fund (Formerly: Atlas Sovereign Liquid Fund)

Rating Type Stability Rating
Current
(11-Dec-18)
Previous
(29-May-18)
Action Maintain Maintain
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The objective of the fund is to provide unit-holders competitive return with low risk and high liquidity by investing primarily in short-term government securities.

The rating reflects the fund's strong credit profile emanating from its investment objective to invest in short-term Government Securities transactions based on quarterly average investment. At end-Jun18, fund’s exposure in banks was ~74% rated 'AAA' and ~26% in T-Bills. The fund has a duration of 3 days at the end of Jun-18. The unit holding pattern of the fund is concentrated with top 10 investors representing almost all of the portfolio. Meanwhile, the group's own investment represents ~ 50% in total portfolio.

Going forward, the company intends to increase its exposure to T-bills. The rating remains dependent on maintaining at least 50% allocation towards government securities on a monthly average basis with portfolio duration not exceeding 60 days.

About the Entity
Atlas Asset Management Limited (AAML), incorporated in August 2002 and a part of Atlas Group (AG), 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 presence in manufacturing, financial, and trading sectors. With an AUM base of ~PKR 32.28bln at Oct-18, AAML is currently managing six open-end funds along with conventional and Islamic pension funds.

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 Advanced Management Programme from INSEAD and holds postgraduate qualifications from University of Karachi & Southeastern University and also holds certification from IFMP. He has been associated with the company for over twelve years and held C-Suite positions for over a decade. He has vast experience of the mutual fund industry and was non- executive director on the board of nineteen listed companies. AAML’s existing team is well qualified with related experience and has demonstrated stability during the year.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.