Muhammad Zain Ayaz
PACRA Maintains Stability Rating of Atlas Islamic Income Fund
|Rating Type||Stability Rating|
Atlas Islamic Income Fund (or the "Fund") reflects the Fund's moderate risk profile, At Jun'21, the Fund had allocated ~50% of the fund's net assets to bank placements rated ‘A+’ and above, ~11% were invested in sukuks rated 'AA' and above, ~13% in GOP ijarah sukuks and ~10% in CPs having rating ‘AA’. The Investment Policy of the Fund allows it to invest in banks rated 'AA' and above. The duration of the fund was 87 days at end Jun'21. The top 10 investors concentration of the Fund, at Jun’21 was ~65%, giving rise to a moderate level of redemption pressure.
Going forward, the Fund intends to maintain its exposure in cash and will look to invest in Sukuks. 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 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.