Lahore, April 18, 2022 (PPI-OT):Atlas Islamic Money Market Fund (or the “Fund”) reflects the Fund’s low-risk profile. The Fund had allocated ~60% of its net assets in a bank rated ‘AA’, while ~13% in ICPs. The investment in a single bank is also giving rise to concentration risk. The overall, credit quality of the asset composition is strong. At the end Dec’21, the Fund had a duration of 23 days limiting the exposure to interest rate risk. While the WAM of the Fund was also 23 days minimizing the credit risk. The top 10 investors’ concentration of the Fund, at Dec’21, was ~86%, of which ~49% are related parties, keeping redemption pressure to a low level. Further, 60% of investments in bank deposits is also providing a cushion against redemption pressure.

Going forward, the Fund is in process of diversifying its Fund’s allocation by placing funds assets in Islamic window of AAA and AA+ rated banks, which would strengthen the credit quality for the assigned rating. Material changes in the Fund’s asset allocation strategy, which could negatively impact the Fund’s credit quality and exposure to interest rate risk, would remain 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: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com