PACRA Maintains Stability Rating of Atlas Sovereign Fund
|Rating Type||Stability Rating|
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 monthly average investment. At end-Dec18, fund’s exposure in banks was ~66% rated 'AA+' and ~34% in T-Bills. The fund has a duration of 6 days at the end of Dec-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 ~71% in total portfolio.
Going forward, the company has changed its category from Money Market Scheme to Income Scheme w.e.f. January 02, 2019 and intends to increase its exposure to T-bills and PIBs whilst reducing from banks. 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.
Atlas Asset Management Limited, 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 29bln at Dec-18, AAML is currently managing eight 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 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.