PACRA Maintains Stability Rating of Atlas Islamic Income Fund
|Rating Type||Stability Rating|
The investment objective of the fund is to preserve capital and generate reasonable rate of return by investing in short, medium and long-term Islamic income instruments.
The rating incorporates the fund's strong credit quality and sound liquidity profile emanating from the fund's policy to invest only in good quality Shariah compliant instruments. At end Dec-17, 93% of the fund's net assets were invested with cash, whilst 5% were invested in bank sukuks rated 'AA-'. The fund has well diversified unit holding pattern, with top10 investors representing 66% of the fund size.
Going forward, the fund intends to maintain its exposure in cash. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.
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 the Group. Atlas Group, established in 1962, is one of the well-known business groups of the country with presence in manufacturing, financial, and trading sectors. With an AUM base of PKR 29.56bln at Dec-17, AAML is currently managing six open-end funds; along with conventional and Islamic Pension Funds.
AAML's seven-member board of directors comprises four representatives of Atlas Group, two independent directors and the CEO. The Vice-Chairman & CEO of AAML, Mr. M. Habib-ur-Rahman is a veteran of the mutual fund industry. He has been associated with the company since 2004. Mr. M. Abdul Samad, Chief Operating Officer, has over sixteen years of experience in the field of Investment Management. The senior management team is well qualified with related experience and has demonstrated relative stability over the years.