PACRA Maintains Stability Rating of Atlas Liquid Fund

Atlas Liquid Fund ("ALF" or the "Fund") is a low risk profile Fund. The objective of Atlas Liquid Fund (ALF) is to provide competitive return to its investors (with a periodic payout) by investing in low risk, highly liquid and short duration portfolio consist of money market instruments. In terms of asset allocation, the Fund had allocated ~88.84% in T‐bills, 8.25% in sukuks, ~2.01% in bank deposits, whereas, remaining ~0.91% was invested in others. From a credit quality perspective, the Fund held approximately 97.10% of its portfolio in AAA-rated or Government Securities, 2.90% in AA+ rated instruments. As of December 2024, the Fund’s Weighted Average Maturity (WAM) stood at 65 days, reflecting a low exposure to credit rate risk. The Fund’s duration was recorded at 64 days, indicating minimal sensitivity to fluctuations in interest rates. The concentration of holdings among the top 10 investors is substantial, with these investors collectively holding 91.95% of the total assets under management (AUM), which introduces a degree of redemption risk. However, this risk is mitigated by the presence of the largest investor, an associated company, which holds 54.61% of the concentrated units. This strategic alignment enhances the Fund’s liquidity position and provides a stabilizing effect, reducing the likelihood of significant disruptions from potential redemption activities.
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 121,164 mln at end of Dec'24.