PACRA Maintains Stability Rating of Atlas Income Fund

Atlas Income Fund ("AIF" or the "Fund") is a medium risk profile Fund. The Objective of Atlas Income Fund is to provide its unit holders a good rate of current income consistent with reasonable concern for safety of principal, liquidity and the facility to join or leave the fund at their convenience. In terms of asset allocation, the Fund had invested around ~59.90% in Treasury Bills (T-bills), ~16.85% in Pakistan Investment Bonds (PIBs), ~9.78% in Sukuks and Term Finance Certificates (TFCs), and ~0.61% in Bank Deposits and ~3.37% in Margin Trading System (MTS). As of December 2024, the Fund maintained a strong credit profile with approximately ~83.13% of its investments in AAA-rated or Government Securities, followed by ~10.40% in AA+ rated instruments, ~1.33% in AA rated, and 0.89% in A+ rated avenues, with the remainder allocated to other categories. The Fund remained compliant with the rating criteria with the assigned ratings. The WAM of the Fund stood at 318 days at the end Dec’24, exposing the Fund to moderate credit rate risk. The portfolio’s duration measured 150 days, signifying sensitivity to changes in market interest rates. The Fund’s investor composition reflected a high concentration, with the top 10 investors collectively accounting for 85.79% of the total assets under management (AUM). Nevertheless, this concentration risk is moderated by the participation of a closely affiliated associated company, which holds a substantial 42.69% stake within this group, providing a measure of resilience against potential redemption pressures and contributing to the Fund’s liquidity management framework.
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 121,164 mln at end of Dec'24