Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the asset manager rating of Atlas Asset Management Limited (AAML) from AM2+ to AM2++, citing the company’s robust management practices, strategic expansion, and significant growth in assets under management (AUM).

According to The Pakistan Credit Rating Agency Limited, the upgrade reflects AAML’s sustainability in management, strong retention of human resources, and expansion in product offerings and branch network. These factors have contributed to a substantial increase in the company’s AUM, which grew by approximately 44% to PKR 102 billion by October 2024, capturing a 3% market share. The acquisition of two new business licenses, Private Fund Management and REIT Management, further underscores the company’s strategic growth initiatives.

AAML’s strong presence in pension funds, with an 8% market share, and its position as the fourth largest in the equity category have also played a crucial role in the rating upgrade. The company’s governance profile and ownership structure have been pivotal in ensuring quality management, which is reflected in the superior performance of its funds. Notably, all funds managed by AAML have outperformed their benchmarks, with nearly 40% ranking in the top quartile.

The company’s revenue increased by approximately 59%, driven by higher management, advisory, and private equity fees, leading to a profitability growth of 1.3 times, reaching PKR 420 million. AAML’s equity stood at PKR 1.7 billion as of June 2024. The company’s future rating will depend on its ability to maintain superior fund performance, improve investor granularity, and enhance digital penetration to strengthen its market position further.

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