Muhammad Zain Ayaz
PACRA Maintains Asset Manager Rating of Atlas Asset Management Limited
|Rating Type||Asset Manager|
The rating incorporates Atlas Asset Management Limited's (or the "Company") stable market share, experienced management team, structured investment decision process and adequate risk management framework. Strong ownership and good governance profile bodes well to the rating. During CY21, the Company has launched 'Atlas Islamic Money Market Fund' and 'Atlas Liquid Fund' to penetrate even further in both conventional and Islamic universe of money market. Since Dec'20, the overall AUMs of the Company increased by ~28% and currently, stood at ~PKR 51.5bln at end Sep'21, which is in line with the overall industry growth. However, the market share of the Company remained stable at 4.8%. The Company has a modest standing in the retail avenue and intends to strengthen its sales team to provide impetus in augmenting retail penetration. To augment its revenue stream, the Company is also offering specialized investment products which includes Separately Managed Accounts with adequate AUMs. The overall fund's performance remained above par with majority funds meeting or exceeding industry average and benchmark. The Company remained profitable during FY21 and has an adequate equity base at end Jun'21. The rating incorporates the Company's association with Atlas Group, a leading business conglomerates in Pakistan having investments in multiple sectors.
The rating is dependent on the Company’s ability to strengthen its market position in terms of AUMs, sustaining superior fund performance and upholding good governance and organizational structure. Meanwhile, customer outreach along with consistent fund performance remains imperative.
Atlas Asset Management Limited, incorporated in August 2002, is a wholly owned subsidiary of Shirazi Investments (Pvt.) Limited – the holding company of Atlas Group. Atlas Group, founded in 1962 with the establishment of Shirazi Investments, is a diversified group having presence in manufacturing, power, financial services, and trading. It consists of four companies listed on the Stock Exchange in Pakistan and a number of non-listed companies. The Company’s seven-member Board of Directors comprises five representatives of Atlas Group including the CEO, the other two are independent directors. Mr. Iftikhar H. Shirazi serves as the Chairman of the Board of Directors of AAML along with several other companies of the Group. The board has two sub-committees for providing oversight on the Company’s affairs: 1) Audit Committee and 2) Human Resource & Remuneration Committee. The Company had AUM's of ~ PKR 51.5bln at end Sep'21 (Dec'20: ~PKR 40.4bln).