PACRA Maintains Stability Rating of Atlas Sovereign Fund

Atlas Sovereign Fund (“ASF” or “the Fund”), a medium-risk profile fund, seeks to deliver competitive returns to its investors through investments primarily in Government securities and other high-quality debt instruments. As of June 2025, the Fund’s assets under management (AUM) stood at PKR 2,754 million. The Fund maintained a diversified allocation, with approximately 66% invested in Government of Pakistan Treasury Bills (T-Bills), 29% in Pakistan Investment Bonds (PIBs), 3% held in cash, and the remaining portion deployed across other avenues. This allocation strategy demonstrates the Fund’s focus on optimizing returns while maintaining adequate liquidity and stability through sovereign-backed exposures. The credit quality profile of the Fund remained strong, with around 99.55% of investments placed in Government securities/AAA-rated avenues and 0.45% in A+ rated instruments, reflecting its emphasis on maintaining a high-quality portfolio consistent with its medium-risk mandate. At period-end, the Weighted Average Maturity (WAM) of the Fund stood at 298 days, indicating exposure to interest rate and credit risk over a medium-term horizon. This higher level of WAM highlights the Fund’s relatively larger investment in long-term government securities, particularly PIBs, which supports enhanced return potential while moderately increasing duration risk. The unit holding structure of the Fund remained concentrated, with the top 10 investors collectively accounting for ~93% of total holdings as of end-June 2025. While this concentration may exert redemption pressure, the Fund’s substantial investment in highly liquid government instruments ensures sufficient flexibility to manage withdrawals effectively and maintain portfolio stability.
Going forward, the material changes in the Fund's asset allocation strategy, which could impact the Fund's credit quality and exposure to interest rate risk, would remain critical for the rating.

About the Entity
AAML, incorporated in August 2002, is a wholly owned subsidiary of Shirazi Investments (Pvt.) Limited – the holding company of Atlas Group. Atlas Group, founded in 1962 with the establishment of Shirazi Investments, is a diversified group with having presence in manufacturing, power, financial services, and trading. The Company’s seven-member Board of Directors comprises five representatives of Atlas Group including the CEO, the other two are independent directors. Mr. Iftikhar H. Shirazi serves as the Chairman of the Board of Directors of AAML along with several other companies of the Group. The board has three committees to provide oversight on the Company’s affairs: 1) Audit Committee, 2) Human Resource & Remuneration Committee, and 3) Investment Committee. The Company had AUMs of PKR 136.3bln at end of Jun'25.