PACRA Maintains Stability Rating of Atlas Islamic Income Fund

Atlas Islamic Income Fund ("AIIF" or the "Fund") is a medium risk profile Fund. The Objective of Atlas Islamic Income Fund is to provide its unit holders with a stable rate of current income consistent with long-term preservation of capital in a Shariah compliant manner. As of December 2024, the Fund’s asset allocation comprised approximately ~40.76% in bank deposits, ~32.39% in Ijarah Sukuk, ~15.56% in Sukuk, and ~7.40% in placements with Banks and DFIs, with the remaining portion invested in other instruments. In terms of credit quality, around ~42.34% of the portfolio was invested in AAA rated or Government Securities, ~42.30% in A+ rated instruments, ~8.87% in AA+ rated, ~3.95% in AA rated, and ~2.18% in A rated avenues, with the rest allocated to other categories. The WAM of the Fund stood at 255 days at the end Dec’24, exposing the Fund to high credit rate risk. The portfolio duration was maintained at 81 days, indicating low interest rate risk. The Fund's unit holding profile reflects a moderate level of investor concentration, with the top 10 unitholders collectively accounting for 34.52% of the total assets under management (AUM). This dispersion indicates a reasonably diversified investor base, which contributes positively to the Fund’s liquidity resilience and reduces susceptibility to redemption-driven volatility.
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.