Atlas Sovereign Fund’s Stability Rating Upheld by PACRA Amid Moderate Risk Positioning

Lahore, The Pakistan Credit Rating Agency Limited (PACRA) has reconfirmed the stability rating for the Atlas Sovereign Fund ("ASF" or the "Fund"), accentuating the Fund's medium-risk profile. Aimed at rendering competitive yields to its unit-holders while balancing medium risk with high liquidity, the Fund primarily allocates its resources into Government Securities and Debt Instruments. PACRA's assigned rating is indicative of the Fund's moderate credit and interest rate risks, both products of its distinct investment strategy. The Fund's investment spread, as of June 2023, spanned across ~1.32% in banks, ~17.8% in T-Bills, ~64.2% in PIBs, ~5.5% in Corporate Sukuks, with the remainder diversified among other sectors.

The WAM of the Fund, noted at an extended 867 days by the close of June 2023, exposes it to credit risks. Meanwhile, a duration of 120 days puts forward interest rate risk considerations, albeit the Fund's inclination towards long-term government papers ensures that the credit risk remains within manageable bounds. The Fund's commitment to the rating criteria has been evident throughout its operations. However, the unit holding pattern is considerably concentrated, with ~98.98% held by the top ten investors, indicating a heightened redemption pressure scenario. Future rating evaluations would carefully factor in any significant modifications to the Fund's asset allocation strategy, particularly those impacting its credit quality or average duration. This information was sourced from the Pakistan Credit Rating Agency Limited.