PACRA Maintains Asset Manager Rating of Atlas Asset Management Limited
|Rating Type||Asset Manager|
The rating incorporates the company’s good governance structure, experienced management team, structured investment process and good fund performance. The affiliation with renowned Atlas Group provides support to the rating. The rating incorporates the competitive performance of its funds when compared to peers. Despite the outflow of the AUMs from equity funds in the mutual fund industry, the AMC managed to maintain its market share in this category. The overall market share of the company witnessed a slight decrease. The company’s AUMs reached at ~PKR 28bln, depicted a decrease of ~15% as compared to corresponding period last year. Lately, the company has acquired an advisory licence from SECP. During 1HCY19, the management increased its fund slate by introducing 2 new funds (including Atlas Islamic Dedicated Stock Fund) and 3 plans under Shariah-Compliant Fund of Funds. The company has an adequate foothold in the retail avenue and it needs concentrated efforts to improve its standing in this regard. The strengthening of the sales team should provide impetus in augmenting retail penetration.
The rating is dependent on upholding existing organization structure along with the strengthening of key human resources, maintaining its technological infrastructure, increase in AUMs and good fund performance. The diversity in the fund slate and customer outreach through different channels also remains imperative for the rating.
Atlas Asset Management Limited, incorporated in August 2002 and a part of Atlas Group, is a wholly owned subsidiary of Shirazi Investments (Pvt.) Limited – the holding company of Atlas Group. Atlas Group, founded in 1962 with the establishment of Shirazi Investments, 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.
The company’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 the 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.