Alfalah Asset Management Limited ("the AMC") was incorporated on October 18, 2004, as an unlisted public limited company. The Company commenced operations in March 2005 and operates from its Karachi head office along with branches across major cities of Pakistan.

The AMC was established as a joint venture of Bank Alfalah Limited and GHP Arbitrium. Later on, GHP Arbitrium divested its stake in the AMC.

As of end-Jun'26, the AMC’s market share stood at 7.8%, with AUMs of PKR 350.8bln, compared to 7.7% at Dec'25 (AUMs: PKR 351.0bln) and 7.7% at Jun'25 (AUMs: PKR 291.0bln), reflecting a sustained strengthening in market position alongside growth in AUMs over the corresponding period. The AMC’s fund mix comprises ~74% conventional and ~26% Shariah-compliant funds. By asset class, money market funds constitute the largest share at ~50%, followed by income funds at ~40% and equity funds at ~10%, indicating a predominantly fixed-income-oriented portfolio, in line with the broader industry, while maintaining a relatively smaller equity allocation.

The AMC manages a diversified fund slate across conventional and Shariah-compliant categories, comprising 46 funds and plans as of Jun'26 spanning CIS, VPS, ETFs, and Fund of Funds. The AMC has evolved into a multi-service platform with six licenses/business capabilities — CIS, REIT Management, Private Equity/Venture Capital, Consultant to the Issue (advisory), Pension Fund Management, and Investment Advisory - SMA — supported by dedicated teams across each vertical, making it the only AMC in the industry with such breadth. During the year, the AMC launched the Alfalah Agri Cultivation Fund-1, successfully closed the Alfalah Shariah Private Financing Fund - I, and introduced its maiden REIT vehicle, offering fractional ownership in Emaar’s premium projects. Under the REIT segment, approximately 26 flats have been acquired under the Emaar-linked investment-based REIT, with listing plans underway and the prospectus under preparation, while two additional projects are under development. The Private Equity/Venture Capital vertical is exploring opportunities across logistics, data centers, and digital assets. Meanwhile, the CTI/advisory business has completed four Sukuk issuances as co-mandated advisor/co-lead arranger, with a further mandates in the pipeline.

As of Jun’26, the top 10 mutual fund investor concentration stood at ~24.8% (Jun’25: ~19.6%), while related-party holdings accounted for ~6% of total AUMs (Jun’25: ~2%). The investor base remained broadly balanced, with institutional investors accounting for ~55% of AUMs (Jun’25: ~54%) and retail investors representing ~45% (Jun’25: ~44%).

The current shareholding of the AMC is held by MAB Investments Inc. (~59.8%) and Bank Alfalah Limited (~40.2%).

MAB Investments Inc. is an investment vehicle of H.H. Sheikh Nahayan bin Mubarak Al Nahayan, a member of the Abu Dhabi Ruling Family, with interests across ICT, financial services, energy, hospitality & real estate, healthcare and agriculture in Sub-Saharan Africa, the Middle East, South Asia and the Caucasus/Black Sea region. Bank Alfalah Limited, incorporated in 1992 and listed on the PSX, operates a network of 1,190 branches (end-Dec'25) across 240+ cities, including 400+ Islamic branches, and is sponsored by the Abu Dhabi Group.

As of Jun'26, Bank Alfalah Limited has an equity base of PKR 194.2bln (end-Dec'25~PKR 197.5bln). The long-term credit rating of Bank Alfalah Limited is ‘AAA’ and the short-term rating is ‘A1+.’

The AMC’s Board comprises eight members, including five non-executive directors, two independent directors and one executive director, the CEO, with representation from both MAB Investments and Bank Alfalah Limited.

Mr. Atif Aslam Bajwa – Chairperson has an extensive international career spanning more than 40 years of executive leadership experience in banking, along with experience serving on multiple boards and in public interest positions. Mr. Bajwa received his education from Columbia University, New York. Mr. Khaled Jamal Abdul Rahman Khanfer – Non-Executive Director has over 18 years of experience and is a Certified Public Accountant (US & Canada). He holds a bachelor’s degree in Accounting and has worked across multinational organizations in multiple jurisdictions. Mr. Sohail Sultan – Non-Executive Director has extensive international banking exposure, with over 20 years of experience, including senior roles at Citibank (London) and Barclays Capital (London). He holds an MSc in Economics (Accounting & Finance) from LSE and an LLB from City of London Business School. Mr. Farooq Ahmed Khan – Non-Executive Director has over 28 years of experience in corporate and investment banking and currently serves as Group Head at Bank Alfalah. He has previously served at UBL, MCB Bank, Faysal Bank, and Eco Trade & Development Bank. He holds an MBA from Washington University in St. Louis and a PICG Director Certification. Mr. Zaigham Sheriff – Non-Executive Director brings over 24 years of diversified leadership experience in retail and consumer banking across Pakistan and the UAE, with senior roles at Bank Alfalah, Standard Chartered Bank, Barclays UAE, and Citibank. His expertise spans strategy, wealth management, business transformation, governance, and customer-centric growth. He holds an MBA in Banking & Finance and a BBA from Greenwich University, Karachi. Ms. Ayesha Aziz – Independent Director has over 28 years of experience in project and structured finance, asset management, and private equity. She is a CFA charterholder with an MBA from IBA. She was the founding Managing Director of Pak Brunei Investment Company, after having worked at ANZ Grindlays and Pak Oman Investment Company. Mr. Khalilullah Shaikh – Independent Director has over 20 years of experience and is a Fellow Chartered Accountant and a five-time ICAP gold medalist. He has held senior positions at PIA, K-Electric, and Shell Group and also served as ICAP’s youngest President in 2019–20.

There are three committees at the board level, (i) Audit Committee, (ii) HR and Remuneration Committee and (iii) Risk Management Committee for effective monitoring and board assistance. 

The internal audit department is outsourced to M/s KPMG Taseer Hadi & Co. Chartered Accountants for effective monitoring of control systems. The external auditor of the AMC is M/s A.F Ferguson & Co. Chartered Accountants, which falls in the ‘A’ category of SBP Panel of Auditors.

The AMC has a well-defined and formal organizational structure with appropriate departmentalization, operating through nine departments with clearly defined roles and responsibilities. As per the March’26 organogram, the management structure is headed by Mr. Khaldoon Bin Latif - CEO, supported by thirteen direct reports overseeing key functions, including Investments, Strategy, Innovation & Business, Finance, Enterprise Operations, Compliance, Risk, Private Funds/PE, Digital Transformation, REIT, Alternate Investments & Research, SMA/Portfolio Management, Technology, and Marketing. The Portfolio Management function is headed by the CIO, with dedicated heads for Equities and Fixed Income. The PE, REIT and Alternate Investments/Research functions are supported by dedicated teams, including a five-member PE team, a two-member REIT team, and a dedicated Research head. The IT function is led by Mr.Salman Munir, while Marketing is managed through dedicated Brand & Digital Marketing and Direct Marketing functions.

The management team comprises experienced and qualified professionals with extensive experience across asset management, banking, capital markets, investment management, and related functions. Mr. Khaldoon Bin Latif, Chief Executive Officer, brings over 21 years of capital markets experience, having served as CEO of Faysal, BMA, and KASB Asset Management, CIO at JS Investments, and earlier held roles at AKD Securities and PICIC AMC. He is a LUMS alumnus and has completed multiple capital market courses with CFA Institute, Daiwa, JP Morgan, and BIBF, along with a Director Certification from IBA. Mr. Saad Haseeb Qureshi, Chief Strategy Officer & Company Secretary, has over 20 years of experience spanning strategy formulation and execution, sales and business development, product structuring, marketing, investment advisory, and HR management. Mr. Muhammad Ayub Khuhro, Chief Investment Officer, brings over 15 years of experience in banking and asset management, including prior leadership as CIO at Faysal Asset Management. A LUMS Economics graduate, he specializes in equity, fixed income, and multi-asset investments, with strong expertise in research-driven portfolio management. Mr. Faisal Ali Khan, Chief Financial Officer, is a Fellow Chartered Accountant with 19 years of experience, including 15 years in asset management. He previously served as CFO & Company Secretary at Faysal Funds and held roles at BMA Funds, Saudi Pak, Attock Refinery, and KPMG. Mr. Salim Sadruddin Mehdi – Chief Innovation & Business Officer, brings over 30 years of experience in the financial services sector, with expertise in strategy, innovation, business development, product management, wealth management, and institutional sales. Prior to joining Alfalah Asset Management Limited, he held senior positions at NBP Fund Management Limited and has also worked with Alvarez & Marsal Middle East, UBL Fund Managers, NAFA, Habib Bank Limited, and PICIC Commercial Bank. He holds an MBA in Finance, along with executive education from leading international business schools. Mr. Zaheer Iqbal – Chief Enterprise Operations Officer, is a Chartered Accountant with over 23 years of experience in finance, operations, governance, and strategic management within the financial services sector. Prior to joining Alfalah Asset Management Limited, he held various senior positions at NBP Fund Management Limited, including Head of Operations and Chief Financial Officer. His experience encompasses operational management, internal controls, governance, and process enhancement.

The AMC operates on DirectFN’s technologically advanced ERP platform, featuring department-specific modules tailored to the requirements of relevant functions and supporting efficient operations. The IT function is led by Mr. Salman Munir overseeing IT Governance & Applications and Mr. Humayun Zaheer heading IT Infrastructure.

The compliance is being led by Mr. Shariq Mukhtar Hashmi. The AMC has devised detailed policies to ensure compliance with all applicable statutory regulations and internal investment guidelines. The AMC uses Excel-based models to monitor the exposure limits and margins.

The AMC manages credit risk through a structured process covering pre-investment credit assessment and ongoing monitoring throughout the life of an exposure. Before investment, counterparty and issuer creditworthiness is assessed using Excel-based models that combine quantitative factors, including financial ratios, leverage and credit history, with qualitative considerations such as management quality, industry outlook, news flow and market pricing. This blended approach helps identify risks that may not be captured through mechanical scoring alone. Exposure limits are established at the issuer, sector and group levels to control concentration risk, while internal rating guidelines define the minimum credit quality required for inclusion in the investable universe. Any exceptions require approval through the relevant governance channel. Portfolio exposures are monitored against regulatory and internal limits, with the Investment Committee reviewing performance, NAV trends and key risk indicators on a monthly basis. Limits are periodically reassessed in light of market conditions, fund size and the credit cycle. The monitoring framework also facilitates early identification of limit breaches, rating migrations or deterioration in counterparty financial health, enabling timely corrective actions, including reduction or exit of positions.

The AMC treats liquidity risk as a distinct and closely monitored risk category, with the Risk Management function maintaining ongoing oversight of liquidity across its fund portfolio. The AMC’s liquidity position remained sound during CY25, supported by stronger operating cash flows and improved collections from funds under management, despite an increase in current liabilities. At the fund level, the AMC maintains adequate exposure to liquid investment avenues, including short-tenor money market instruments, providing a buffer against redemption pressures and supporting orderly investor withdrawals. Liquidity is monitored on an ongoing basis to facilitate timely management of changes in fund cash flows, investor concentration, and prevailing market liquidity conditions.

The AMC manages market risk arising from movements in interest rates, equity prices, and other asset valuations through a combination of quantitative risk assessment and defined exposure limits. Value-at-Risk (VaR) is used to estimate potential portfolio losses under normal market conditions, while beta analysis assesses the sensitivity of equity exposures to broader market movements. Stress testing further evaluates portfolio resilience under extreme but plausible scenarios, including sharp interest rate movements and significant equity market corrections. The risk assessment framework supports the setting and monitoring of exposure limits covering areas such as duration, sector concentration, and single-security exposure. These limits are communicated to portfolio managers and incorporated into investment and portfolio construction decisions. The Risk Management function, in consultation with the Investment Committee, periodically reviews the adequacy of these limits and recalibrates them, where required, in response to changes in market volatility, fund size, investor profile, and regulatory requirements.

The investment committee comprises the Chief Executive Officer, Chief Investment Officer, Chief Finance Officer, Chief Compliance Officer, Chief Risk Officer, Head of Equities, Head of Fixed Income, Head of Research, and Fund Managers.

The investment committee comprises of qualified and experienced professionals. The investment committee meets on monthly basis and reviews the investment strategy of each fund under management and its performance on regular basis to incorporate the impact of market circumstances on funds’ performance.

The Research function operates under the supervision of Ms. Sana Abdullah Khatri - Head of Research, leading the function. The department is supported by a six-member team, including Akshay Thakur - Senior Investment Analyst, Muhammad Hanzala - Research & Data Analyst, and three Research Analysts. The research function employs fundamental analysis of key sectors and stocks to identify attractive investment opportunities, supported by standard financial models for equity valuation and broker research. Research serves as the analytical backbone of the Investment Committee and operates independently of Portfolio Management to maintain objectivity. The Head of Research also acts as Secretary to the Investment Committee, responsible for compiling agendas and documenting minutes. Investment proposals, including credit notes, equity pitches, and product concept papers, are supported by comprehensive, source-based analysis covering Discounted Cash Flow (DCF), Sum-of-the-Parts (SOTP), and Price-to-Book (P/B) valuation methodologies, credit assessments, risk flagging, and covenant/regulatory review prior to capital allocation. Over the years the research function has witnessed improvements in depth, quality, and sector coverage.

The AMC has provided its investors with an online platform which allows real time access to their accounts. The mobile app of the AMC provides various value-added services such as fund NAVs, investment account details and E-transactions. The AMC has also integrated the Alfa app to facilitate the account holders of Bank Alfalah. 

The AMC disseminates unit holder statement on monthly basis which comprises investment value and asset allocations along with dissemination and publication of FMR on its website in a timely manner. The customers are also provided with SMS and e-mail services for transaction alerts and NAV prices alerts.

The AMC operates eight investment centers across major Pakistani cities and leverages Bank Alfalah's branch network and distribution agreements, alongside fintech distribution partners, to expand its retail base; digital initiatives are led by Umar Farooq - Head of Digital Transformation, with Mahnoor Obaid - Head of Digital Marketing & Branding and Nazia Karmali - Head of Direct Marketing. On the digital side, the AMC processed 89,245 digital transactions in Jun'26, comprising 32,682 investment transactions (25,393 via the AAML Mobile App and 7,289 via other digital channels), 24,825 conversion transactions (24,453 via the App and 372 via other channels), and 31,738 redemption transactions (24,170 via the App and 7,568 via other channels). The AAML Mobile App remained the dominant digital channel with 74,016 transactions, contributing 82.96% of total digital volumes, while other digital channels contributed 15,229 transactions (17.04%). Bank Alfalah's distribution network mobilized PKR 98,824mln of AUM as of Jun'26, underscoring its role as a key channel alongside the AMC's growing digital footprint. The AMC is also pursuing additional digital initiatives currently under development.

As of Jun’26, total AUMs stood at PKR 350.8bln, reflecting a 20.3% increase from PKR 291.6bln at Jun’25, reflecting continued growth in the AMC’s managed CIS portfolio. The majority of funds outperformed their respective benchmarks, with notable AUM growth recorded in Alfalah GHP Money Market Fund 793%, Alfalah GHP Stock Fund 362% and Alfalah GHP Alpha Fund 328%. Equity funds delivered the strongest absolute returns, led by Alfalah GHP Alpha Fund at 44.3% (benchmark: 43.5%), followed by Alfalah GHP Stock Fund at 42.6% (benchmark: 43.5%) and Alfalah GHP Value Fund (Asset Allocation) at 38.4% (benchmark: 37.3%). VPS equity sub-funds and the flagship pension fund also recorded returns above 40%, while money market and income funds generated relatively stable returns in the 9–13% range, broadly in line with their respective benchmarks. The AMC has also increased its strategic focus on the Separately Managed Accounts (SMA) business, with 10 reported discretionary mandates and aggregate portfolios of approximately PKR 118.4bln. The mandates generated an average return of 4.2% against an average reference rate of 3.3%, with seven out of ten mandates outperforming their respective benchmarks. The AMC intends to gradually increase SMA’s contribution to the overall business, thereby further diversifying the historically CIS-focused business model.

During 3MCY26, the AMC’s total revenue stood at PKR 827.6mln, compared with PKR 623.7mln in 3MCY25, with management fee income contributing PKR 785.9mln (3MCY25: PKR 602.3mln; CY25: PKR 2,890.2mln). However, the AMC recorded a PKR 316.9mln share of loss from associates, compared with a profit of PKR 35.5mln in 3MCY25 (CY25: profit of PKR 481.0mln), primarily reflecting the mark-to-market impact on underlying investments amid the downturn in the PSX during the period. Consequently, the AMC reported a loss before tax of PKR 132.3mln and loss after tax of PKR 130.9mln, against a profit after tax of PKR 194.0mln in 3MCY25 (CY25: PKR 853.4mln). Despite the temporary impact on profitability, the AMC maintains a strong equity base of PKR 3,166.6mln (CY25: PKR 3,297.5mln), well above regulatory requirements, supported by synergies with sponsor Bank Alfalah Limited and long-term backing from MAB Investments.