The Pakistan Credit Rating Agency Limited
29-May-18
Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintain Stability Rating of Atlas Money Market Fund
| Rating Type | Stability Rating | |
|
Current (29-May-18 ) |
Previous (12-Jul-17 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA(f) | AA(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The fund's mandate is to generate stable income stream with preservation of capital by investing in AA and above rated banks.
The rating reflects the fund's low risk profile emanating from the fund's investment objective to invest in avenues rated 'AA' and above. At end Dec 17, asset allocation of the fund consisted of Bank Deposits 99% (77% AAA rated). The portfolio duration of the fund represents very low exposure towards interest rate volatility. The fund's unit holding pattern remains highly concentrated with the top10 investors comprising 90% of the fund's net assets.
Going forward, company intends to increase exposure in T-bills. Meanwhile, the remaining assets will remain invested in cash.
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 the Group. Atlas Group, established in 1962, is one of the well-known business groups of the country with presence in manufacturing, financial, and trading sectors. With an AUM base of PKR 29.56bln at Dec-17, AAML is currently managing six open-end funds; along with conventional and Islamic Pension Funds.
AAML's seven-member board of directors comprises four representatives of Atlas Group, two independent directors and the CEO. The Vice-Chairman & CEO of AAML, Mr. M.Habib-ur-Rahman is a veteran of the mutual fund industry. He has been associated with the company since 2004. Mr. M. Abdul Samad, Chief Operating Officer, has over sixteen years of experience in the field of Investment Management. The senior management team is well qualified with related experience and has demonstrated relative stability over the years.