Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the asset manager ratings of National Investment Trust Limited (NITL), Pakistan's oldest asset management company, citing robust financial performance and a strong market position. The company's ratings continue to benefit from its historical legacy, government sponsorship, and a solid governance framework.

NITL's asset under management (AUM) experienced a substantial growth of approximately 60.6%, reaching PKR 197.9 billion by the end of December 2024. This growth was driven largely by the company's signature equity fund, the National Investment Unit Trust (NIUT), which holds a significant 49% share of NITL's total AUM and accounts for a 38.3% market share in the equity category.

The investment landscape in Pakistan saw a remarkable 105% growth in the asset management industry during the calendar year 2024, spurred by favorable market conditions and strong equity fund performance. The shift in investor preference from high-interest-rate assets to equities further fueled this growth.

NITL's diversified fund slate and experienced management team were instrumental in outperforming benchmarks, with the NIT Government Bond Fund notably increasing its AUM by 502% to PKR 18.8 billion. The company's investor base is comprised of 27% retail and 73% institutional investors, indicating a broad market reach.

Financially, NITL reported a 67% increase in management fees, amounting to PKR 966.4 million, and a profit of approximately PKR 1,435 million for the year, driven by gains in investment re-measurement and profit sharing from associates. The company's total equity stands at PKR 17.8 billion, marking the highest in the market.

The maintained rating reflects NITL's ability to sustain its market share and uphold stringent investment processes. However, continued strong fund performance relative to benchmarks and peers remains crucial. Any prolonged downturn in performance or significant market share loss could impact future ratings.