PACRA Maintains Stability Rating of Atlas Islamic Income Fund

Lahore, April 17, 2019 (PPI-OT): The objective of the fund is to seek preservation of capital and reasonable rate of return from a broadly diversified portfolio of long, medium and short-term, high-quality Islamic income instruments.

The rating incorporates the fund’s moderate credit quality and sound liquidity profile emanating from the fund’s strategy to invest in good quality shariah compliant instruments. At end Dec-18, ~83% of the fund’s net assets were invested as cash with banks rated ‘A and above’, whilst ~13% were invested in sukuks rated ‘AA’.

The fund has a well-diversified unit holding pattern, with top 10 investors representing ~63% of the fund size which exposes the fund to moderate level of redemption pressure.
Going forward, the fund intends to maintain its exposure in cash and debt instruments. Material changes in the fund’s asset allocation strategy, which could negatively impact the fund’s credit quality and exposure to interest rate risk, remains critical for the rating.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com