Pakistan Credit Rating Agency Limited maintains stability rating of Atlas Income Fund

Lahore, March 13, 2014 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the stability rating of Atlas Income Fund (AIF), an open-end income fund, at ‘A+ (f)’ (Single A Plus ; fund rating). The fund’s rating denotes a strong capacity to manage relative stability in returns and low exposure to risks.

The mandate of the fund is to earn competitive rate of return while ensuring capital preservation by constructing a liquid portfolio of investments in debt securities, money market instruments, and placements with scheduled banks.

The rating reflects the fund’s low exposure to interest rate volatility, strong credit profile, and diversification across assets. At end-Dec13, the portfolio is primarily invested in government securities (Tbills:52% PIBs: 1%); a sizeable portion is deployed in margin trading system (19%), which due to its self liquidating nature possesses less risk over a short tenure.

The remaining assets are invested in good quality TFCs (5%) and daily cash balances with good quality banks (2%). The unit holding pattern of the fund is highly concentrated with the top10 investors representing 85% of fund assets. However, this is mitigated to a large extent by sizeable investments of group companies.

Going forward, the fund intends to keep 30% of the fund’s net assets invested in Margin Trading System (MTS). The remaining assets of the fund will be placed in government securities, term placements and cash balances with banks/DFIs of strong credit quality. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remain critical for the rating.

For more information, contact:
Hammad Rashid
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425

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