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The Pakistan Credit Rating Agency Limited
Press Release

Date
24-Dec-21

Analyst
Muhammad Zain Ayaz
zain.ayaz@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Asset Manager Rating of Atlas Asset Management Limited

Rating Type Asset Manager
Current
(24-Dec-21)
Previous
(24-Dec-20)
Action Maintain Maintain
AM Rating AM2+ AM2+
Outlook Stable Stable
Rating Watch - -

The rating incorporates Atlas Asset Management Limited's (or the "Company") stable market share, experienced management team, structured investment decision process and adequate risk management framework. Strong ownership and good governance profile bodes well to the rating. During CY21, the Company has launched 'Atlas Islamic Money Market Fund' and 'Atlas Liquid Fund' to penetrate even further in both conventional and Islamic universe of money market. Since Dec'20, the overall AUMs of the Company increased by ~28% and currently, stood at ~PKR 51.5bln at end Sep'21, which is in line with the overall industry growth. However, the market share of the Company remained stable at 4.8%. The Company has a modest standing in the retail avenue and intends to strengthen its sales team to provide impetus in augmenting retail penetration. To augment its revenue stream, the Company is also offering specialized investment products which includes Separately Managed Accounts with adequate AUMs. The overall fund's performance remained above par with majority funds meeting or exceeding industry average and benchmark. The Company remained profitable during FY21 and has an adequate equity base at end Jun'21. The rating incorporates the Company's association with Atlas Group, a leading business conglomerates in Pakistan having investments in multiple sectors.
The rating is dependent on the Company’s ability to strengthen its market position in terms of AUMs, sustaining superior fund performance and upholding good governance and organizational structure. Meanwhile, customer outreach along with consistent fund performance remains imperative.

About the Entity
Atlas Asset Management Limited, 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 having presence in manufacturing, power, financial services, and trading. It consists of four companies listed on the Stock Exchange in Pakistan and a number of non-listed companies. 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 two sub-committees for providing oversight on the Company’s affairs: 1) Audit Committee and 2) Human Resource & Remuneration Committee. The Company had AUM's of ~ PKR 51.5bln at end Sep'21 (Dec'20: ~PKR 40.4bln).

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.