The Pakistan Credit Rating Agency Limited
Press Release


Ayesha Qasim

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PACRA Maintains Stability Rating of Atlas Income Fund

Rating Type Stability Rating
(11-Dec-18 )
(29-May-18 )
Action Maintain Maintain
Long Term AA-(f) AA-(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

The objective of the fund is to earn a competitive return while preserving capital by investing in good quality corporate debt instruments, bank deposits and government securities.

The rating reflects the fund's medium exposure to interest rate volatility, moderate credit profile, and diversification across assets. At the end of Jun-18, fund's exposure was ~67% in cash, ~27% in TFCs, while ~2% in T-bills and MTS each. The unit holding pattern of the fund is concentrated with top 10 investors representing ~92% of the fund's assets (of which almost all of the investments are group's investments) which exposes the fund to a very low level of redemption pressure.

Going forward, the fund intends to increase its exposure to government securities. Material changes in the fund's asset allocation strategy, which could negatively impact the fund's credit quality and exposure to interest rate risk, remains critical for the rating.

About the Entity
Atlas Asset Management Limited (AAML), incorporated in August 2002 and a part of Atlas Group (AG), 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 presence in manufacturing, financial, and trading sectors. With an AUM base of ~PKR 32.28bln at Oct-18, AAML is currently managing six open-end funds along with conventional and Islamic pension funds.

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 Advanced Management Programme from INSEAD and holds postgraduate qualifications from University of Karachi & Southeastern University and also 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 and was non- executive director on the board of nineteen listed companies. AAML’s existing team is well qualified with related experience and has demonstrated stability during the year.

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.