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The Pakistan Credit Rating Agency Limited

Date
22-Dec-2017
Analysts
Rai Umar Zafar
rai.umar@pacra.com

Ahmed Sheikh
ahmed.sheikh@pacra.com

+92-42-35869504
www.pacra.com
Applicable Criteria

  • Methodology | Asset Manager Rating (May 17)

Related Research

  • Sector Study | Asset Management (Apr 17)
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PACRA Maintains Asset Manager Rating of Atlas Asset Management Limited
 Rating Type Asset Manager
Current
(22-Dec-2017)
Previous
(04-May-2017)
 Action Maintain Upgrade
 AM Rating AM2+ AM2+
 Outlook Stable Stable
 Rating Watch - -

The rating reflects the company’s experienced management team, structured investment process, and sound quality of system and processes. It incorporated minor attrition in its AUM base owing to lackluster stock market performance resulting in maintained system share. The management's concerted efforts to strengthen its profile along with a good fund performance. The focus towards increasing the reach out to customers in remote areas and strengthening the sales team should further benefit in augmenting the retail penetration. Robust decision making process, ably supported by strong fund management function lends support to the sustained fund performance. The present management team has long association with the company; a well-structured succession process benefits the company. The affiliation of AAML with an acknowledged business group - Atlas Group - lends support to the rating.

The rating is dependent upon the company's ability to successfully execute its business strategy encompassing enhancement in system share while further diluting the AUM concentration and expanding the retail investor base. Moreover, consistency in funds' performance remains important.
About the Entity
Atlas Asset Management Limited (AAML), incorporated in August 2002 and a part of Atlas Group (AG), is a wholly owned (100%) subsidiary of Shirazi Investments (Pvt.) Limited (SIL) - the holding company of the Group. Atlas Group, established in 1962, is one of the well-known business groups of the country with presence in manufacturing, financial, and trading sectors. With an AUM base of PKR 30.0bln at Sep-17, AAML is currently managing seven open end funds; along with conventional and Islamic Pension Funds.

AAML's seven-member board of directors comprises four representatives of Atlas Group, two independent directors and the CEO. The Vice-Chairman & CEO of AAML, Mr. M. Habib-ur-Rahman is a veteran of the mutual fund industry. He has been associated with the company since 2004. Mr. M. Abdul Samad, Chief Operating Officer, has over sixteen years of experience in the field of Investment Management. The senior management team is well qualified with related experience and has demonstrated relative stability over the years.
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.