PACRA Maintains Stability Rating of Atlas Income Fund
|Rating Type||Stability Rating|
The rating reflects the fund's medium exposure to interest rate volatility, strong credit profile, and diversification of assets. At end Jun’20, fund's exposure to T-Bills was ~29%, cash placements ~23%, TFCs/Sukuks ~23% , while ~20% was invested in PIBs. The unit holding pattern of the fund shows redemption pressure over the fund as top 10 investors represents ~85% of the fund assets. The duration of the fund was 230 days at end Jun'20, due to significant investments in PIB's and TFC/Sukuks. This exhibits interest rate sensitivity of the fund, which can lead to volatility in the fund's NAV.
Going forward, the fund intends to keep its exposure levels as per above criteria. 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 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 fourteen 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 29.8bln at end Jun'20.