Atlas Liquid Fund’s Stability Rating Preserved by PACRA Amidst Low Risk Tendencies

Lahore, The Pakistan Credit Rating Agency Limited (PACRA) reaffirmed the stability rating of the Atlas Liquid Fund, pointing towards its inherently low-risk attributes. Committed to delivering competitive yields to stakeholders, the Fund steers investments towards low-risk, easily liquidated, and brief duration assets in the money market. PACRA's assigned rating mirrors the Fund's formidable credit and controlled interest rate risk, springing from its investment doctrine. As of June 2023, investments were diversified across ~72.9% in AAA-rated T Bills, ~0.47% in Banks, ~14.77% in Sukuk, and ~10.23% in PIBs, with the remainder distributed in other sectors.

The Fund's WAM was confined to 46 days, and its duration capped at 43 days by the conclusion of June 2023, consequently constricting the span of exposure to credit and interest rate risks. Unwavering compliance with the prescribed rating criteria was evident throughout. However, a substantial investor concentration was noticed, with nearly ~99.96% of the Fund being held by the top ten investors as of June 2023, signifying an elevated level of redemption pressure. It is crucial to highlight that any significant shifts in the Fund's asset allocation strategy affecting its credit stature or average duration might recalibrate its rating. This information was sourced from the Pakistan Credit Rating Agency Limited.