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The Pakistan Credit Rating Agency Limited
Press Release

Date
30-Jun-18

Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Asset Manager Rating of Atlas Asset Management Limited

Rating Type Asset Manager
Current
(30-Jun-18)
Previous
(22-Dec-17)
Action Maintain Maintain
AM Rating AM2+ AM2+
Outlook Stable Stable
Rating Watch - -

The rating reflects the company’s qualified and experienced management team, structured investment process and sound quality of systems. The affiliation of Atlas Asset Management Limited with an acknowledged business group, -Atlas Group, gives support to the rating. The rating incorporates enhancement in the AUMs base by 10% resulting in an increase in its system share (Dec-17: 5.1%, Dec-16: 4.4%) which is owed to the brand name and the fund performance. Furthermore, the company is one of the initial four pension fund managers who have been issued license voluntary pension schemes. Increased focus of the management towards strengthening the investment decision making process lends support to the performance of funds.

The rating is dependent on the company’s business plan to expand its outreach by opening up new sales branches with a greater focus towards retail penetration. Moreover, sustainability and improvement in performance of funds remains imperative. Continued demonstration of high governance standards and risk management is critical.

About the Entity
Atlas Asset Management Limited (AAML), incorporated in August 2002 and a part of Atlas Group (AG), is a wholly owned (100%) subsidiary of Shirazi Investments (Pvt.) Limited (SIL) – the holding company of Atlas Group. Atlas Group, founded in 1962 with establishment of SIL, is a diversified group dealing in manufacturing, power, financial services, and trading. It consists of four companies listed on the Stock Exchanges in Pakistan, and a number of non-listed companies.

AAML’s seven-member board of directors comprises five representatives of Atlas Group including CEO, the other two are independent directors. During 2HFY18, Ms Zehra Naqvi and Mr. Muhammad Abdul Samad joined company’s board. The board has three sub-committees for providing oversight on the company’s affairs: 1) Audit Committee, 2) Human Resource Committee and 3) Investment Committee

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.