Muhammad Zain Ayaz
PACRA Assigns Initial Stability Rating to Atlas Liquid Fund
|Rating Type||Stability Rating|
Atlas Liquid Fund (or the "fund") is an open ended fund, managed by Atlas Asset Management Limited (AAML). In order to strengthen its relative position in money market category, AAML has launched the fund in Nov'21, it has achieved a size of PKR ~2bln . The rating reflects the fund's low credit risk profile emanating from the fund's investment policy to invest in strong credit quality investment avenues with sound liquidity. On Nov-21, fund's assets were 100% invested with single bank rated 'AA+'. Further, the investment policy of the Fund strictly prohibits investment in below AA rated avenues. The current weighted average maturity (WAM) of the fund is 1 day. The Fund plans to maintain its WAM around 60 days. Whereas the unit holding pattern is currently concentrated with top 10 investors representing 100% of the total fund size. The offering document of the fund, restricts the fund to liquid and low risk profile avenues, which reflects redemption risk as well. Any breach of investment policy is considered negative.
Going forward, the fund is in process of diversifying its funds allocation by placing funds assets in AAA and AA+ rated banks and T-bills (having maximum duration of 90 days). The strategy represents high liquidity and low risk profile, which bodes well to 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 Program 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 fifteen years and held C-Suite positions for over a decade. He has vast experience of the mutual fund industry. The Company is currently managing five conventional and five shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 51.5bln at end Sep'21.