The Pakistan Credit Rating Agency Limited
18-Oct-24
Analyst
Hassaan Ahmad
Hassaan.Ahmad@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of Atlas Money Market Fund
| Rating Type | Stability Rating | |
|
Current (18-Oct-24 ) |
Previous (18-Apr-24 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
Atlas Money Market Fund (or the "Fund") is a medium risk profile Fund. The investment objective of the Fund is to provide a stable income stream with preservation of capital by investing in AA and above rated banks and short-term Government Securities. The assigned rating reflects the Fund's strong credit and interest rate risk profile emanating from its investment strategy.. The Fund had allocated ~82.0% investments in T-Bills, ~15.8% in Bank deposits, ~1.8% in Short Term Sukuk while remaining was invested in others. At end Jun-24, most investment was held in Govt Sec/AAA rated avenues (~96.77%) , ~1.78% in AA, and ~1.45% had invested in AA+ rated avenues. At end Jun-24, the WAM and duration of the Fund stood at 71 days, limiting the credit risk and interest rate risk of the Fund. The Fund's unit holding pattern of top 10 investors concentration were ~53.44%; keeping the redemption pressure at high level. The redemption pressure is addressed through 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.