Muhammad Zain Ayaz
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'20, asset allocation of the Fund consisted of ~99% 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 Fund's unit holding pattern remains moderately concentrated with the top 10 investors comprising ~78% of the Fund's net assets, ~20% of which are related parties. This exposes the Fund to a moderate level of redemption pressure.
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, 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 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 40.4bln at end Dec'20 (Dec'19: ~PKR 31bln).