PACRA upgrades the Investment Advisor Rating of BMA Investment Advisors Limited

The rating upgrade of BMA Investment Advisors Limited (“BMA-IA” or the "Company”) reflects the strong and visionary leadership that continues to steer the organization toward strategic growth and operational excellence. The leadership’s unwavering focus on sustainable expansion, prudent governance, and institutional strengthening has been instrumental in enhancing investor confidence and solidifying the Company’s market standing. The upgrade also captures the exceptional growth in AUM, alongside a strengthened equity base and notable improvement in profitability. Moreover, it recognizes the Company’s reinforced organizational framework, robust investment management processes, and enhanced quality of investor reporting. The Company has demonstrated an impressive growth trajectory, marked by consistent expansion in business operations. The growth in business volumes and associated performance indicators depicts that BMA-IA customers are having excellent returns in their portfolios, which contributes to sustained client relationships and supports the overall company's business profitability and long-term stability. BMA Investment Advisors remains committed to delivering exceptional client service and upholding the highest standards of transparency in investment management. As part of its ongoing focus on operational excellence, the Company has implemented significant enhancements in its Standard Operating Procedures (SOPs) and internal policies, along with a comprehensive upgrade of the Digital Portal, which offers real-time market updates, detailed performance metrics across multiple timeframes, and simplified access to daily NAVs. The SMA portfolio recorded an impressive growth of 183% as of June 2025, compared to its level in June 2024. The overall clientele has increased by 50% since last year. During the period, the SMAs delivered consistent and satisfactory portfolio returns, outperforming benchmarks in certain instances and generating performance-based fees.
On the financial front, the Company recorded a notable improvement in revenue streams, with performance fees increasing 600% and reaching PKR 328 million as of June 2025, compared to PKR 46 million in June 2024. Management fees also exhibited strong growth, rising to PKR 135.5 million as of June 2025 from PKR 71 million in June 2024, reflecting enhanced portfolio performance and higher AUM levels. Consequently, profit after tax grew substantially to PKR 165 million from PKR 31 million in June 2024. The Company also enhanced its operational efficiency by improving the expense ratio. At the end of June 2025, the Company’s equity stood at approximately PKR 64 million. During July–August 2025, the Company generated a profit of around PKR 46.7 million, raising its equity to PKR 110.7 million. Subsequently, with a shareholder equity injection of PKR 160 million, the equity base strengthened further to PKR 270.7 million by the end of August 2025. This reflects a marked improvement in the Company’s capitalization and financial resilience.
Going forward, the longevity and commitment of the investors within the SMA portfolio, along with a consistent performance track record and high-quality client servicing, will be key to maintaining the assigned rating. Additionally, reducing the concentration among the top ten investors will be essential for the continued stability and growth of the Company.

About the Entity
BMA Investment Advisors Limited was incorporated in April 2005 and obtained its licenses for investment advisory and asset management in April and July 2005, respectively. The Company is a wholly owned subsidiary of BMA Capital Management Limited. Mr. Mian Qasim Saeed Ahmed presently serves as the President of the Company, whereas Mr. Haris Anwar assumed charge as Chief Executive Officer in June 2025. The Company has a three-member board, two of whom are non-executive and one is independent. Mr. Salim Khan has been serving as the Chairman of the Board since October 2017.