PACRA Maintains Stability Rating of Atlas Islamic Money Market Fund

Atlas Islamic Money Market Fund (“A-IMMF” or “the Fund”), a low-risk profile fund, aims to provide competitive returns to its investors through periodic payouts by investing in a low-risk, highly liquid, and short-duration portfolio comprising Shariah-compliant money market instruments. As of June 2025, the Fund’s assets under management (AUM) stood at PKR 7,404mln. The Fund maintained a diversified allocation, with approximately 62% invested in cash, 15% placed with Banks/DFIs, 14% in Sukuk, 10% in Ijarah Sukuk, and the remaining portion deployed across other avenues. This allocation mix reflects the Fund’s conservative investment approach, prioritizing liquidity and stability while ensuring compliance with Islamic investment principles. The credit quality profile of the Fund reflected moderate strength, with around 45% exposure in Government securities/AAA-rated avenues, 42% in AA-rated, 11% in A1+, and the remaining portion across other investment-grade instruments. This structure highlights the Fund’s emphasis on maintaining exposure to high-quality, low-risk instruments consistent with its conservative mandate. At period-end, the Weighted Average Maturity (WAM) of the Fund stood at 24 days, underscoring its short-term maturity profile and limited exposure to interest rate and credit risk. The low WAM reflects the Fund’s strong liquidity positioning and prudent risk management strategy. The unit holding structure of the Fund indicated concentration, with the top 10 investors collectively accounting for ~46% of total holdings as of end-June 2025. While this introduces moderate redemption pressure, the Fund’s significant liquidity and allocation in short-term Islamic instruments provide ample flexibility to manage redemptions 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.