PACRA Maintains Stability Rating of Atlas Income Fund

Atlas Income Fund (“AIF” or “the Fund”) carries a medium-risk profile, reflecting its balanced investment strategy aimed at generating a competitive stream of current income while maintaining adequate liquidity and capital preservation. As of June 2025, the Fund’s assets under management (AUM) stood at PKR 9,457 million. The Fund’s asset mix was largely composed of Government of Pakistan Treasury Bills (67%), followed by Pakistan Investment Bonds (13%), Sukuk/TFCs (6%), and bank deposits (6%), with the remainder deployed in other avenues. The allocation indicates a conservative positioning with a predominant exposure to sovereign and high-quality instruments, supporting the Fund’s risk profile. The credit quality of the fund remains sound, with around 96% of exposures in AAA-rated/government securities, 2% in AA, 1% in AA-, and 1% in A+ rated instruments. The high concentration in top-tier credit quality assets underpins the Fund’s prudent investment approach and provides comfort to its overall risk profile. At end-June 2025, the Weighted Average Maturity (WAM) stood at 265 days, reflecting moderate exposure to interest rate and credit risk relative to short-duration peers. The current maturity structure is considered consistent with the Fund’s income-generation strategy, while duration management remains a key factor in maintaining stability amid changing rate environments. The unit holding pattern reflects concentration, with the top 10 investors accounting for ~78% of outstanding units at period-end. While this level of concentration may expose the Fund to potential redemption pressure, the sizable allocation in liquid and government-backed instruments mitigates liquidity risk to a considerable extent.
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 136.3bln at end of Jun'25.