The Pakistan Credit Rating Agency Limited
15-Oct-21
Analyst
Muhammad Zain Ayaz
zain.ayaz@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains Stability Rating of Atlas Income Fund
| Rating Type | Stability Rating | |
|
Current (15-Oct-21 ) |
Previous (16-Apr-21 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA-(f) | AA-(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Atlas Income Fund (or the "Fund") reflects the Fund's moderate risk profile. At Jun'21, the Fund had allocated ~43% as cash placements in banks having rating ‘AA+’ and above, ~25% in PIBs, ~10% was invested in TFCs/sukuks, ~10% in MTS and ~8% in T-Bills. The duration of the fund was 226 days at end Jun'21. The top 10 investors concentration of the Fund, at Jun’21 was ~85%, of which ~70% are related parties, keeping redemption pressure to low level. The Investment Policy of the Fund allows it to invest in banks rated 'BBB' and above.
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.
About
the Entity
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 Program from INSEAD and holds postgraduate qualifications from the University of Karachi and the Southeastern University, he also holds certification from IFMP. He has been associated with the Company for over fifteen years and held C-Suite positions for over a decade. He has a significant Board experience, where he has served as a director on the board of nineteen listed companies, including Atlas Battery Limited, Lucky Cement, Berger Paints, Mirpurkhas Sugar, amongst others along with vast experience of the mutual fund industry. The Company is currently managing four conventional and five shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 50.3bln at end Jun'21.