The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Zain Ayaz

Applicable Criteria

Related Research

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of Atlas Islamic Money Market Fund

Rating Type Stability Rating
(15-Oct-21 )
(21-Apr-21 )
Action Maintain Maintain
Long Term AA(f) AA(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

Atlas Islamic Money Market Fund (or the "Fund") reflects the Fund's low risk profile, had allocated ~44% in bank rated ‘AA’, while ~42% in bai-mujjal rated ‘AA+’ and above. The Fund had a duration of 39 days at end Jun'21. The top 10 investors concentration of the Fund, at Jun’21 was ~88%, of which ~64% are related parties, keeping redemption pressure to low level. Further, the investment policy of the Fund strictly prohibits investment in below AA rated avenues. The offering document of the fund, only allows the fund to liquid and low risk profile avenues, which limits the build-up of redemption pressure as well. Any breach of investment policy is considered negative.
Going forward, the fund is in process of diversifying its funds allocation by placing funds assets in in Islamic window of AAA and AA+ rated banks. 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 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.

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.