The Pakistan Credit Rating Agency Limited
28-Dec-18
Analyst
Shahzaib Khalid
shahzaib.khalid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Asset Manager Rating of Atlas Asset Management Limited
| Rating Type | Asset Manager | |
|
Current (28-Dec-18 ) |
Previous (30-Jun-18 ) |
|
| Action | Maintain | Maintain |
| AM Rating | AM2+ | AM2+ |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects the organization’s good governance structure, experienced management team, structured investment processes and stability in the competitive asset management industry with ~5% market share. The affiliation with renowned Atlas Group provides support to the rating. The rating incorporates the competitive performance of its funds when compared to peers. Despite the outflow of the AUMs from equity funds in the mutual fund industry, the AMC managed to increase in this category by ~20%. The company’s AUMs reached at ~PKR 33bln at end Nov-18 as compared to ~PKR 30bln in Dec-17. Lately, the company has acquired an advisory licence from SECP. The management intends to increase its fund slate by introducing new funds in Fund of Funds category and Capital Protection. The company has an adequate foothold in the retail avenue and it needs concentrated efforts to improve its standing in this regard. The strengthening of the sales team should provide impetus in augmenting retail penetration.
The rating is dependent on upholding existing organization structure along with the strengthening of key human resources and maintaining its technological infrastructure. Meanwhile, the diversity in the fund slate, customer outreach through different channels and superior fund performance remains imperative for the rating.
About
the Entity
Atlas Asset Management Limited (AAML), incorporated in August 2002 and a part of Atlas Group (AG), is a wholly owned (100%) subsidiary of Shirazi Investments (Pvt.) Limited (SIL) – the holding company of Atlas Group. Atlas Group, founded in 1962 with the establishment of SIL, is a diversified group dealing in manufacturing, power, financial services, and trading. It consists of four companies listed on the Stock Exchanges in Pakistan and a number of non-listed companies.
AAML’s seven-member board of directors comprises five representatives of Atlas Group including CEO, the other two are independent directors. During 2HFY18, Ms Zehra Naqvi and Mr. Muhammad Abdul Samad joined the company’s board. The board has three sub-committees for providing oversight on the company’s affairs: 1) Audit Committee, 2) Human Resource Committee and 3) Investment Committee