Analyst
Muhammad Zain Ayaz
zain.ayaz@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of Atlas Islamic Money Market Fund
Rating Type | Stability Rating | |
Current (15-Oct-21 ) |
Previous (21-Apr-21 ) |
|
Action | Maintain | Maintain |
Long Term | AA(f) | AA(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
Atlas Islamic Money Market Fund (or the "Fund") reflects the Fund's low risk profile, had allocated ~44% in bank rated ‘AA’, while ~42% in bai-mujjal rated ‘AA+’ and above. The Fund had a duration of 39 days at end Jun'21. The top 10 investors concentration of the Fund, at Jun’21 was ~88%, of which ~64% are related parties, keeping redemption pressure to low level. Further, the investment policy of the Fund strictly prohibits investment in below AA rated avenues. The offering document of the fund, only allows the fund to liquid and low risk profile avenues, which limits the build-up of redemption pressure as well. Any breach of investment policy is considered negative.
Going forward, the fund is in process of diversifying its funds allocation by placing funds assets in in Islamic window of AAA and AA+ rated banks. The strategy represents high liquidity and low risk profile, which bodes well to 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 four conventional and five shariah compliant funds, along with two in the VPS category. The assets under management stood at ~PKR 50.3bln at end Jun'21.