PACRA Maintains Stability Rating of Atlas Money Market Fund
|Rating Type||Stability Rating|
The rating reflects the fund's low risk profile emanating from the fund's investment objective to invest in avenues rated 'AA' and above. At end Dec'19, asset allocation of the fund consisted of ~74% investments in Cash placements. The investments were placed in Banks rated AA+ and above. The portfolio duration of the fund represents very low exposure towards interest rate volatility. The exposure in T-Bills was taken in order to diversify the revenue stream. The fund's unit holding pattern remains moderately concentrated with the top 10 investors comprising ~79% of the fund's net assets at end Dec'19.
Going forward, the fund intends to increase its exposure in T-Bills whilst the remaining assets will be invested as cash placements. 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 twelve 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 30.9bln at end Dec’19.