PACRA Maintains Stability Rating of Atlas Sovereign Fund
|Rating Type||Stability Rating|
The rating reflects the fund's strong credit profile emanating from its investment objective to invest in Government Securities and debt instruments. At end Dec'19, fund’s exposure in Cash placements was ~26%. The fund invested ~39% in PIB's (majority in 5 year Bonds), while ~33% was invested in 1 year T-Bills. The fund had a duration of 442 days at end Dec'19. The unit holding pattern of the fund represents redemption risk as top 10 investors concentration was ~96%.
Going forward, the fund intends to increase exposure in T-Bills and the remaining assets will be invested in longer duration PIB's. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for 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 Programme from INSEAD and holds postgraduate qualifications from the University of Karachi and the 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. The Company is currently managing four conventional and four shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 30.9bln at end Dec’19.