Atlas Islamic Cash Fund

Initial subscription for the Atlas Islamic Cash Fund was conducted solely on its launch date of the 3^rd July 2024 and this open-ended mutual fund was listed on the Pakistan Stock Exchange on the 19^th July 2024.

Operated by Atlas Asset Management, the fund invests in highly liquid Shariah compliant money market instruments with a maximum time to maturity of six months for any asset whereas, weighted average time to maturity of the fund cannot exceed 90 days.

Designed to be low risk on capital exposure, investments are primarily in short-term government securities and bank deposits. An exception applies till the 5^th December 2024 for government debt securities of up to a year’s maturity, if raised and traded through the Pakistan Stock Exchange.

External investments are allowed with prior approval of the Securities and Exchange Commission of Pakistan (SECP). In all cases, a 35% cap on net asset value (NAV) applies for investments within a corporate grouping and a 15% NAV limit for any single set of debt securities.

Unit purchases can be made by both residents within Pakistan and foreigners abroad, subject to cross-border financial transaction regulations imposed by the government. The minimum fund size is PKR100 million (US$358,000) at all times, with 90 days leeway for the fund manager to comply.

Offering periodic payouts to unit holders, which shall be reinvested until specifically redeemed, the fund is required to maintain at least 10% of net assets in cash and government-issues Ijarah Sukuk of less than 90 days maturity that can be readily converted into cash.

Should there be a cashflow issue, the fund manager is allowed to obtain Shariah financing solely to meet redemption requests. Such financing is to be repayable within a 90-day period and not exceed 15% of NAV or other SECP-specified limit.

With the accounting year start of 1^st July, the fund is mandated to distribute at least 90% of income gained, less allowed expenses, as dividends to unitholders – which can also be in the form of bonus units.

*Disclaimer:  The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.