In accordance with the Securities and Exchange Commission of Pakistan's (SECP) circular dated November 5 to all Asset Management Companies, Atlas; Income Fund (AIF) has revalued its portfolio of debt securities. The revaluation has resulted in a downward adjustment of 7.8 percent in the Net Asset Value (NAV) of AIF.
As per SECP's circular the revaluation of debt securities at discounted rates will be effective till January 12, 2009 or such other date the SECP may specify. Over 99 percent of AIFs TFC portfolio consists of "A" or higher rated TFCs of which 83 percent are "AA" or higher rated. Hence, these high quality TFCs will be able to recover their true market value once the liquidity situation eases.
The discount in NAV represents an opportunity for investors for fresh investments in AIF since the NAV appreciation going forward will be higher as compared to the period July 1 to November 4, 2008. Meanwhile, the Atlas Islamic Income Fund (AIIF) has not been affected by the SECP circular. AIIF's investment portfolio is 100 percent in cash instruments and the fund will continue to follow this investment policy in the near future.-PR
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