PACRA Maintains Stability Rating of Atlas Islamic Income Fund

Atlas Islamic Income Fund (“AIIF” or “the Fund”), a medium-risk profile fund, aims to provide investors with a stable rate of current income while ensuring long-term preservation of capital in a Shariah-compliant manner. As of June 2025, the Fund’s assets under management (AUM) stood at PKR 4,989 million. The Fund maintained a diversified allocation, with approximately 64% invested in cash, 18% in Ijarah Sukuk, 8% placed with Banks/DFIs, 7% in Sukuk, and the remaining portion deployed across other avenues. This allocation mix reflects the Fund’s strategy of balancing liquidity with income generation through exposure to high-quality Islamic instruments. The credit quality profile of the Fund reflected moderate strength, with around 63% exposure in AA- rated avenues, 19% in AAA/government securities, 12% in AA, 5% in A1+, and 2% in A+ rated instruments. This composition underscores the Fund’s approach of maintaining exposure across sound credit-quality tiers while aligning with its medium-risk investment mandate. At period-end, the Weighted Average Maturity (WAM) stood at 117 days, indicating a moderate maturity profile and measured exposure to credit and interest rate risk. This level of WAM reflects the Fund’s allocation in a mix of short- to medium-term Islamic instruments, which supports income stability while moderately enhancing return potential. The unit holding structure of the Fund remained concentrated, with the top 10 investors collectively accounting for ~53% of total holdings as of end-June 2025. While this introduces moderate redemption pressure, the Fund’s considerable liquidity and allocation in easily tradable Islamic avenues provide sufficient flexibility to manage withdrawals without affecting portfolio stability.
Going forward, the material changes in the Fund's asset allocation strategy, which could impact the Fund's credit quality and exposure to interest rate risk, would remain critical for the rating.

About the Entity
AAML, 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 with having presence in manufacturing, power, financial services, and trading. 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 three committees to provide oversight on the Company’s affairs: 1) Audit Committee, 2) Human Resource & Remuneration Committee, and 3) Investment Committee. The Company had AUMs of PKR 136.3bln at end of Jun'25.