logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
17-Apr-20

Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of Atlas Islamic Income Fund

Rating Type Stability Rating
Current
(17-Apr-20)
Previous
(17-Oct-19)
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

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 Dec'19, ~83% of the fund's net assets were invested with cash, whilst ~15% were invested in sukuks rated 'AA' or above. The fund has well diversified unit holding pattern, with top 10 investors representing ~59% of the fund size at end Dec'19.
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.

About the Entity
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.

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.