PACRA Maintains the Stability Rating of Atlas Islamic Money Market Fund

Atlas Islamic Money Market Fund ("AIMMF" or "the Fund") is categorized under a low-risk profile, with the objective of providing competitive returns to its investors through a periodic payout by investing in a low-risk, highly liquid, and short-duration portfolio of Shariah compliant money market instruments. As of Dec'25, the Fund's Assets Under Management (AUM) stood at PKR 13,227mln, compared to PKR 7,404mln as of Jun'25 (the last review), reflecting a remarkable ~79% expansion in fund size over the review period, indicative of strong and growing investor appetite for the Fund's Shariah compliant money market offering. In terms of asset allocation, approximately 52% of the portfolio was invested in placements with banks/DFIs, 29% in cash, 14% in TFCs/Sukuks, and ~5% in Ijarah Sukuks, reflecting a well-diversified Shariah compliant portfolio with a strong emphasis on short-duration, liquid instruments consistent with the Fund's money market mandate. From a credit quality perspective, approximately 60% of the Fund's assets were invested in AAA rated instruments and Government Securities, ~11% in AA+ rated avenues, ~15% in AA rated instruments, and ~12% in A1+ rated instruments, with the remainder in other exposures. The overall credit profile is considered sound and well-structured, with the dominant allocation to AAA and sovereign-backed Shariah compliant instruments providing a strong investment-grade anchor to the portfolio. The Fund's Weighted Average Maturity (WAM) stood at 34 days as of Dec'25, reflecting limited sensitivity to interest rate movements and supporting the Fund's adequate liquidity position. The short duration positioning affords the Fund meaningful flexibility to reprice its portfolio in response to evolving monetary policy and market conditions, a feature that is particularly relevant in the current rate-sensitive environment. Meanwhile, the unit holding pattern indicates moderate concentration, with the top 10 investors accounting for ~53% of the Fund's total holdings, of which ~16% comprise associated companies which are typically sticky in nature, providing a degree of stability to the investor base. The overall concentration level is assessed as moderate; however, the Fund's highly liquid asset allocation and short WAM profile provide adequate comfort regarding its ability to meet potential redemption requirements swiftly. In terms of performance, the Fund reported an annualized one-year return of 10.52% as of Dec'25, against a benchmark return of 9.95%, reflecting a notable outperformance of approximately 57 basis points. This strong above-benchmark outcome is considered a commendable result for a low-risk Shariah compliant money market fund, reflecting the Fund's effective portfolio management within the Islamic investment universe and its ability to generate competitive risk-adjusted returns.
Going forward, the material changes in the Fund's asset allocation strategy, which could impact the Fund's credit quality and exposure to interest rate risk, would remain critical for the rating.

About the Entity
AAML, 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 with having presence in manufacturing, power, financial services, and trading. 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 serves as the Chairman of the Board of Directors of AAML along with several other companies of the Group. The board has three committees to provide oversight on the Company’s affairs: 1) Audit Committee, 2) Human Resource & Remuneration Committee, and 3) Investment Committee. The Company had AUMs of PKR 162bln at end of Dec'25.