PACRA Maintains Stability Rating of Atlas Islamic Income Fund
|Rating Type||Stability Rating|
Atlas Islamic Income Fund ("AIIF" or the "Fund") is a moderate risk profile. The investment objective of the Fund is to seek preservation of capital and reasonable rate of return from a broadly diversified portfolio of long, medium and short term, high quality Islamic income instruments. The assigned rating reflects the Fund's moderate credit and interest rate risk profile emanating from its investment strategy. The Fund had allocated ~44.56% in Corporate Sukuks, ~36.18% in Banks, ~15.96% in Ijara Sukuks and ~3.3% was invested in Others. During the period under review, the Fund was partially compliant with the assigned rating criteria, however, going forward the Fund would get compliant. The WAM of the Fund was 580 days in Dec’22 which shows a decrease from previous period which is mainly due to increase in Placements in Banks. However, still exposing the Fund to high credit risk. The duration of the Fund stood at 64 days in Dec’22; limiting the exposure to interest rate risk. The top 10 investors concentration of the Fund, at Dec’22 were ~46.74% limiting the Fund to redemption pressure.
Going forward, the material changes in the Fund's asset allocation strategy, which could impact the Fund's credit quality and exposure to interest rate risk, would remain critical for the rating.
Atlas Asset Management Limited, incorporated in August 2002 and a part of Atlas Group, is a wholly owned (100%) subsidiary of Shirazi Investments (Pvt.) Limited - the holding company of the Group. Atlas Group, established in 1962, is one of the well-known business groups of the Country with a presence in manufacturing, financial, and trading sectors.
AAML's seven-member board of directors comprises four representatives of Atlas Group, two independent directors and the CEO. The CEO of the Company, Mr. Muhammad Abdul Samad, has completed the Advanced Management Program from INSEAD and holds postgraduate qualifications from the University of Karachi and the Southeastern University, he also holds certification from IFMP. He has been associated with the Company for over seventeen years and held C-Suite positions for over a decade. He has a significant Board experience, where he has served as a director on the board of nineteen listed companies, including Atlas Battery Limited, Lucky Cement, Berger Paints, Mirpurkhas Sugar, amongst others along with vast experience of the mutual fund industry. The Company is currently managing five conventional and five shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 49bln at end Dec'22