PACRA Maintains Stability Rating of Atlas Islamic Income Fund
|Rating Type||Stability Rating|
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 Jun-19, 90% of the fund's net assets were invested with cash, whilst 7% were invested in sukuks rated 'AA-'. The fund has well diversified unit holding pattern, with top 10 investors representing 64% of the fund size.
Going forward, the fund intends to increase 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, incorporated in August 2002 and a part of Atlas Group (AG), 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. With an AUM base of ~PKR 26 bln at Jun-19, AAML is currently managing four conventional and four shariah compliant funds along with 2 voluntary pension funds.
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 Programme from INSEAD and holds postgraduate qualifications from the University of Karachi and the Southeastern University and holds certification from IFMP. He has been associated with the company for over twelve years and held C-Suite positions for over a decade. He has vast experience of the mutual fund industry and was non- executive director on the board of nineteen listed companies. AAML’s existing team is well qualified with related experience and has demonstrated stability during the year.