PACRA Maintains Stability Rating of Atlas Sovereign Liquid Fund
|Rating Type||Stability Rating|
The fund objective is to provide 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-Dec17, fund’s exposure in banks were 68% and 32% in (AAA rated) T-Bills. Fund has a duration of 16 days at end 2017. The unit holding pattern of the fund represents redemption risk as top 10 investors concentration was 100%.
Going forward, company intends to increase exposure in T-bills and rating remains dependent on maintaining at least 75% allocation towards government securities on monthly average basis with portfolio duration not exceeding 45 days.
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 (SIL) - 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 29.56bln at Dec-17, 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 Vice-Chairman & CEO of AAML, Mr. M. Habib-ur-Rahman is a veteran of the mutual fund industry. He has been associated with the company since 2004. Mr. M. Abdul Samad, Chief Operating Officer, has over sixteen years of experience in the field of Investment Management. The senior management team is well qualified with related experience and has demonstrated relative stability over the years.