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 high quality Shariah compliant instruments and maintain the cash balances with Banks rated 'A' or above. At end Jun'20, ~73% of the fund's net assets were invested with cash, ~14% were invested in Corporate Sukuks rated 'AA' or above, whilst ~12% were invested in Ijarah Sukuks. The fund has well diversified unit holding pattern, with top 10 investors representing ~60% of the fund size.
Going forward, the fund intends to maintain its exposure in cash and will look to invest in Sukuks in order to diversify the revenue stream. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remain critical for the rating.
Atlas Asset Management Limited, incorporated in August 2002 and a part of Atlas Group, 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.
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 fourteen years and held C-Suite positions for over a decade. He has vast experience of the mutual fund industry. The Company is currently managing four conventional and four shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 29.8bln at end Jun'20.