KARACHI: The Pakistan Credit Rating Agency Limited has affirmed the stability rating of Atlas Income Fund, which continues to maintain its medium risk profile. The Fund’s primary goal is to offer unit holders a favorable rate of current income while ensuring the safety of principal, liquidity, and the flexibility for investors to enter or exit the Fund at their convenience.

In terms of asset allocation, Atlas Income Fund has invested approximately 59.90% in Treasury Bills, 16.85% in Pakistan Investment Bonds, 9.78% in Sukuks and Term Finance Certificates, 0.61% in Bank Deposits, and 3.37% in the Margin Trading System. By the end of December 2024, the Fund maintained a strong credit profile, with roughly 83.13% of its investments in AAA-rated or Government Securities.

The Fund’s investments also include 10.40% in AA+ rated instruments, 1.33% in AA rated, and 0.89% in A+ rated avenues, with the remaining allocation in other categories. The Fund’s weighted average maturity stood at 318 days, indicating moderate credit rate risk, while the portfolio’s duration was 150 days, showing sensitivity to market interest rate changes.

The investor composition of Atlas Income Fund shows a high concentration, with the top ten investors holding 85.79% of the total assets under management. However, this concentration risk is mitigated by the involvement of an affiliated company, which holds a significant 42.69% stake, providing resilience against potential redemption pressures and aiding in liquidity management.

Going forward, any material changes in the Fund’s asset allocation strategy could impact its credit quality and exposure to interest rate risk, which will remain critical factors for its rating.