KARACHI, Oct 12: The Atlas group proposes to float a Rs500-million money market fund, which would be managed by the Atlas Management Company Limited — a wholly owned subsidiary of the Atlas Investment Bank Limited.

Yusuf Shirazi, the group chairman, told Dawn that the money market fund would attempt to raise Rs500 million, which would be twice the minimum capital requirement, stipulated by law, for such funds. He said that approval had been received from the Securities and Exchange Commission of Pakistan and the Fund was expected to be launched within a month. The money market fund would initially invest in fixed income securities, he said.

Mr Shirazi stated that the capital would be subscribed by the sponsors, financial institutions, and the funds would also be raised through public flotation, although he did not specify the time and the amount of money to be raised through the public issue.

“With the registration of Atlas Asset Management Company, the number of asset management companies (in the country) would increase to five,” said Shirazi.

He claimed that Atlas Investment Bank, nonetheless, was the first investment bank to have entered the area of asset management through formation of a company under the Asset Management Companies Rules, 1995.

Mr Shirazi stated that the money market fund would provide another avenue of income and growth for the group’s Investment Bank.

He said it was possible to operate the money market fund profitably, through sound financial management that assures adequate yields to investors.

The four asset management companies already in the field include those of NIT; UBL; ABAMCO Limited and Arif Habib Securities Limited.