Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the stability rating of Atlas Liquid Fund (ALF), a fund characterized by a low-risk profile, underscoring its sustained creditworthiness. The fund aims to deliver competitive returns to investors through a portfolio focused on low-risk, highly liquid, and short-duration money market instruments.

Atlas Liquid Fund's asset allocation reveals a strong orientation toward government securities, with approximately 88.84% of its assets invested in Treasury bills, 8.25% in sukuks, and about 2.01% in bank deposits. The remainder of the fund's assets, approximately 0.91%, is held in other investment vehicles. Regarding credit quality, a significant portion—97.10%—of the fund's portfolio comprises AAA-rated or government securities, while the rest is invested in AA+ rated instruments.

As of December 2024, the fund's Weighted Average Maturity (WAM) was recorded at 65 days, indicating limited exposure to credit rate risk. Similarly, the fund's duration of 64 days suggests minimal sensitivity to interest rate fluctuations.

The fund's holdings are notably concentrated among its top ten investors, who collectively own 91.95% of the total assets under management (AUM). While this concentration introduces a potential redemption risk, it 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, providing a stabilizing effect that reduces the likelihood of significant disruptions from potential redemption activities.

Going forward, any substantial changes in the fund's asset allocation strategy that could affect its credit quality and exposure to interest rate risk will be critical to its continued rating stability.