PACRA Upgrades the Asset Manager Rating of Atlas Asset Management Limited

The rating upgrade reflects Atlas Asset Management Limited’s (“AAML” or “the AMC”) superior business profile, supported by a demonstrated history of its fund performance. The rating takes comfort from the sustained growth momentum, best governance practices, and improving market positioning. AAML has established a strong brand presence as a leading player in the Voluntary Pension Scheme (VPS) and equity segments by consistently delivering competitive returns. Its significant market share in these categories highlights its franchise strength and competitive standing among peers. The AMC’s management team remains its prominent key strength, demonstrating strategic foresight, execution capability, and commitment to institutional excellence. Their focus on disciplined investment management, operational efficiency, and regulatory compliance continues to reinforce the AMC’s credibility in the market. Despite being a non-bank–backed AMC, AAML’s growth trajectory remains commendable. It continues to leverage a technology-driven operating model, superior service quality, and an expanding retail investor base, supporting sustainable growth and operational resilience. This has enabled the AMC to compete effectively with larger, bank-sponsored peers. AAML has demonstrated notable expansion in its AUM base, which increased by ~72% over the last year to reach PKR 164bln as of Sep’25, translating into a 4% market share. The AMC maintains a strong foothold in the equity segment, ranking as the second-largest player in the category, reflecting consistent fund performance and sustained investor traction. The AMC continues to strengthen its equity platform, with the launch of four new equity-focused funds, aimed at expanding the retail base and improving retail contribution to the AUM mix. AAML holds a REIT Management license and is planning to launch a Shariah-compliant, rental-based REIT in the near future, targeting an initial AUM size of approximately PKR 4bln. The AMC also holds a Private Equity Management license, enabling diversification into private market offerings. The AMC is enhancing digital accessibility, with the upcoming 1Link integration set to streamline onboarding, transactions, and retail inflows. AAML operates within a robust governance framework, supported by experienced management and well-defined oversight structures. The investment decision-making process remains research-driven, structured, and disciplined, enabling all funds to consistently outperform their respective benchmarks. The AUM mix depicts a healthy diversification with 34% in equity funds and 66% in income/money market categories. While top-10 investor concentration remains on the higher side at ~72%, further dilution is encouraged to strengthen resilience against redemption pressures. On the financial side, revenue grew by ~89% on the back of higher management fees, advisory income, and private equity fees. Profitability improved by 74%, reaching PKR 750mln (FY24: PKR 420mln), supported by rising core income, investment gains, and dividend streams. The AMC’s equity strengthened to PKR 2.5bln as of Jun’25 (SPLY: PKR 1.7bln), reflecting enhanced financial soundness.
The rating depends on the AMC's ability to strengthen its market position regarding AUMs, sustain superior fund performance, uphold good governance, and organizational structure, while Improvement in investor granularity would remain imperative. Retail penetration through digital channels would bode well.

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 AMC'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 AMC's affairs: 1) Audit Committee, 2) Human Resource & Remuneration Committee, and 3) Investment Committee.