PACRA Maintains Stability Rating of Atlas Islamic Money Market Fund

Atlas Islamic Money Market Fund (or the "Fund") reflects the Fund's low-risk profile. The Fund had allocated ~60% of its net assets in a bank rated ‘AA’, while ~13% in ICPs. The investment in a single bank is also giving rise to concentration risk. The overall, credit quality of the asset composition is strong. At the end Dec'21, the Fund had a duration of 23 days limiting the exposure to interest rate risk. While the WAM of the Fund was also 23 days minimizing the credit risk. The top 10 investors' concentration of the Fund, at Dec’21, was ~86%, of which ~49% are related parties, keeping redemption pressure to a low level. Further, 60% of investments in bank deposits is also providing a cushion against redemption pressure.
Going forward, the Fund is in process of diversifying its Fund's allocation by placing funds assets in Islamic window of AAA and AA+ rated banks, which would strengthen the credit quality for the assigned rating. Material changes in the Fund's asset allocation strategy, which could negatively impact the Fund's credit quality and exposure to interest rate risk, would remain critical for 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 five conventional and five shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 52 bln at end Dec'21.