The Pakistan Credit Rating Agency Limited
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Madiha Sohail

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PACRA Maintains Asset Manager Rating of Atlas Asset Management Limited

Rating Type Asset Manager
(24-Dec-20 )
(26-Dec-19 )
Action Maintain Maintain
AM Rating AM2+ AM2+
Outlook Stable Stable
Rating Watch - -

The rating incorporates Atlas Asset Management Limited's (or the "Company") stable market share, experience management team, structured investment decision process and adequate risk management framework. Strong ownership and good governance profile also provide support to the rating. The Company has an adequate product slate and is focusing on launching fund in shariah compliant category. Since Dec'19, the overall AUMs of the Company increased by ~30% and stood at ~PKR 40bln at end Sep'20 which is in line with the industry growth for the same period. However, the market share of the Company remained stable at 4.5%. The Company has a modest standing in the retail avenue and intends to strengthen its sales team to provide impetus in augmenting retail penetration. To augment its revenue stream, the Company is also offering specialized investment products which includes Separately Manged Accounts with adequate AUMs as compared to peers. The overall fund's performance remained above par with majority funds meeting or exceeding industry average and benchmark. The Company remained profitable during FY20 and has an adequate equity base at end Sep'20. The rating incorporates the Company's association with Atlas Group, a leading business conglomerates in Pakistan having investments in multiple sectors.
The rating is dependent on the Company’s ability to strengthen its market position in terms of AUMs, sustaining superior fund performance and upholding good governance and organizational structure. Meanwhile, customer outreach along with consistent fund performance remains imperative.

About the Entity
Atlas Asset Management Limited, incorporated in August 2002, 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 having presence in manufacturing, power, financial services, and trading. It consists of four companies listed on the Stock Exchange in Pakistan and a number of non-listed companies. The Company’s seven-member Board of Directors comprises five representatives of Atlas Group including the CEO, the other two are independent directors. Mr. Iftikhar H. Shirazi was appointed in the Board of Directors, after the demise of Mr. Yusuf H. Shirazi. Mr. Iftikhar H. Shirazi is currently Chairman of Shirazi Investments (Pvt) Limited. The board has two sub-committees for providing oversight on the Company’s affairs: 1) Audit Committee and 2) Human Resource & Remuneration Committee. The Company had AUM's of ~ PKR 40bln at end Sep'20 (Dec'19: ~PKR 31bln).

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.