PACRA Maintains Stability Rating of Atlas Money Market Fund
|Rating Type||Stability Rating|
The objective of the fund is to provide a stable income stream with the preservation of capital by investing in AA and above rated banks and short-term government securities.
The rating reflects very strong credit quality and low-risk profile emanating from the fund's investment objective to invest in avenues rated 'AA' and above. At the end of Dec-18, the asset allocation of the fund consisted of ~99% bank deposits (62% 'AAA' rated and 37% 'AA+'). The portfolio duration of the fund represents extremely low exposure towards interest rate volatility. The unit holding pattern of the fund is concentrated with top 10 investors representing ~82% of the fund's assets. Meanwhile, the group's own investment represents ~37% in total portfolio.
Going forward, the company intends to increase its exposure in T-Bills whilst the remaining assets will be invested as cash with banks.
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 presence in manufacturing, financial, and trading sectors. With an AUM base of ~PKR 29bln at Dec-18, AAML is currently managing eight 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 CEO of the company, Mr. Muhammad Abdul Samad, has completed the Advanced Management Programme from INSEAD and holds postgraduate qualifications from University of Karachi & 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.