PACRA Maintains Asset Manager Rating of Alfalah Asset Management Limited

Alfalah Asset Management Limited ("the AMC"), backed by the sponsorship of Bank Alfalah Limited and MAB Investments, continues to feature among the larger players in Pakistan's asset management industry, with a diversified business model encompassing Collective Investment Schemes (CIS), Separately Managed Accounts (SMA), Voluntary Pension Schemes (VPS), REIT Management, Private Equity & Venture Capital, and Consultant to the Issue mandates. The assigned rating takes comfort from the experienced management team, robust control environment, and structured investment processes. During the period under review, the AMC's Assets Under Management (AUM) grew by ~20% to PKR 351bln as at Jun'26, further increasing to over PKR 400bln subsequently in Jul'26. Notwithstanding this growth, the AMC's market share remained largely stable at ~8%, in line with overall industry expansion. The fund slate continues to reflect healthy diversification across conventional and Shariah-compliant categories, catering to varying investor risk appetites. Fund performance remained largely in line with respective benchmarks, with the majority of funds generating competitive returns. The client mix remains well-balanced between retail and corporate segments, with retail penetration currently standing at 45% of total AUMs; the AMC intends to further enhance this going forward. Top-ten investor concentration stood at ~24.8%, while related-party holdings accounted for ~6% of total AUMs. Within the VPS segment, the AMC holds an adequate market share of ~2% of pension fund schemes, complemented by a comprehensive suite of employer-sponsored pension offerings. The AMC also maintains a sound competitive position within the SMA segment, underpinned by market-competitive returns. Advisory income exhibited notable growth, nearly doubling in CY25 relative to CY24.
The AMC has further diversified its product suite through the launch of its first Investment-Based REIT Fund, sized at PKR 2.5bln with a three-year tenor, backed by 25-30 premium apartment units, thereby providing investors indirect exposure to Emaar's real estate developments via a regulated, professionally managed platform; the RMC has also begun contributing REIT-related advisory income. Within the Private Equity space, the AMC launched the Alfalah Agri Cultivation Fund-1, which has invested in Terra Crop Innovations (Pvt.) Ltd. to develop a mechanized, sustainable corporate farming initiative in the Cholistan Desert, aimed at supporting agricultural productivity, food security, export potential, and import substitution — further broadening the AMC's alternative investment franchise. Notably, Alfalah Investments remains the only AMC holding a Consultant to the Issue licence and successfully executed four Sukuk transactions during the period, reinforcing its fee-based advisory franchise. On the digital front, the AMC processed ~PKR 90bln in transactions through digital channels, of which ~83% originated via app-based contributions. In terms of distribution, in addition to its own network of 10 branches, the AMC leverages the sponsor bank's branch network to broaden its investor outreach, with ~28% of total AUMs channelized through bank branches under commission-based arrangements. On the financial profile, the AMC posted PAT of PKR 853mln in CY25, up 34% YoY, driven by a 60% increase in management fee income. The equity base continues to provide an adequate cushion over minimum regulatory requirements, reported at PKR 3.3bln (CY24: PKR 2.4bln).
Sustainable profitability, market share, and fund performance will remain imperative.

About the Entity
Alfalah Asset Management Limited was incorporated on October 18, 2004, as an unlisted public limited company. The AMC's ownership structure currently comprises MAB Investments Inc. (~59.8%) and Bank Alfalah Limited (~40.2%). The Board of Directors comprises eight members, including the Chairperson, Mr. Atif Bajwa, who brings over four decades of international executive leadership experience in the banking sector. The CEO, Mr. Khuldoon Bin Latif, joined the AMC in Mar'23 and possesses over 21 years of diversified experience in capital markets.