The Pakistan Credit Rating Agency Limited
29-Jun-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
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Related Research
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PACRA Maintains the Stability Rating of Atlas Liquid Fund
| Rating Type | Stability Rating | |
|
Current (29-Jun-22 ) |
Previous (29-Dec-21 ) |
|
| Action | Maintain | Initial |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Atlas Liquid Fund (or the "Fund") is an open ended Fund, managed by Atlas Asset Management Limited (AAML). Since its launched, the Fund has achieved a size of PKR ~1,597mln . The rating reflects the Fund's low credit risk profile emanating from the Fund's investment strategy to invest in strong credit quality investment avenues with sound liquidity. Atlas Liquid Fund (or the "Fund") had allocated ~57% in bank, while ~43% in T-Bills majority is in 6 months. At the end Mar’22, the AUMs of the Fund were ~PKR 1,579mln. The duration and the WAM of the fund was 28 days limiting the exposure to interest rate risk. The top 10 investors concentration of the Fund, at Mar’22 was ~99%, of which ~96% are related parties, keeping redemption pressure to low level.
Going forward, the fund is in process of diversifying its funds allocation by placing funds assets in AAA and AA+ rated banks and T-bills (having maximum duration of 90 days). The strategy represents high liquidity and low risk profile, which bodes well to 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 five conventional and five shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 41 bln at end Mar'22