PACRA Maintains Stability Rating of Atlas Income Fund

Atlas Income Fund ("AIF" or the "Fund") is a medium risk profile Fund. The investment objective of the Fund is to earn a competitive return while preserving capital by investing in good quality corporate debt instruments, bank deposits and government securities. The assigned rating reflects the Fund's low credit and interest rate risk profile emanating from its investment strategy. The Fund had allocated ~85.2% in T Bills, ~6.9% in TFC/Sukuk, ~5.33% in PIBs, ~1.29% in Ijara Sukuks, ~0.64% in bank deposits while remaining was invested in others at the end of Jun-24. At end Jun-24, most of the investments was held in Govt Sec/AAA rated avenues (~94.66%), ~1.60% in AA+ and the remaining was invested in others. The Fund remained compliant with the rating criteria with the assigned ratings. The duration of the Fund stood at 156 days at end Jun-24, exposing the Fund to high interest rate risk. The WAM of the Fund stood at 350 days at the end Jun-24, exposing the Fund to high credit risk. However, since the investment in long term Govt papers, the credit risk is manageable. The unit holding pattern of the Fund concentration were ~93.24% represented by top ten investors, exposing the Fund to very high level of redemption pressure. The redemption pressure is addressed through the maintenance of sufficient liquidity.
Going forward, the material changes in the Fund's asset allocation strategy, which could impact the Fund's credit quality and exposure to interest rate risk, would remain critical for the rating.

About the Entity
AAML, 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 with having presence in manufacturing, power, financial services, and trading. 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 three committees to provide oversight on the Company’s affairs: 1) Audit Committee, 2) Human Resource & Remuneration Committee, and 3) Investment Committee. The Company had AUMs of PKR 88.456bln at end Jun'24.