Lahore, The Pakistan Credit Rating Agency Limited (PACRA) has reaffirmed the stability rating of the Atlas Islamic Money Market Fund, spotlighting the Fund's low-risk demeanor. The Fund is designed to offer competitive returns to its investors, with the possibility of periodic payouts, by channeling investments into a portfolio dominated by low-risk, highly liquid, short-duration, Shariah Compliant money market instruments. The rating bestowed on the Fund underscores its moderate credit and interest rate risks, a direct result of its selected investment strategy.
By June 2023, investments included ~27.9% in cash deposits, ~17.4% in TFC/Sukuks, and a substantial ~53.23% in placements with banks/DFIs, leaving the remainder in other assets. Both the Fund's WAM and Duration were observed at 27 days, emphasizing its limited exposure to credit risk. However, with about ~62.72% of its assets concentrated among the top 10 investors as of June 2023, there's evident redemption pressure on the Fund. Future ratings could witness fluctuations should there be any significant alterations in the Fund's asset allocation approach that might impact its credit quality or average duration. This information was sourced from the Pakistan Credit Rating Agency Limited.