PACRA Maintains Asset Manager Rating of AL Habib Asset Management Limited

The rating assigned to AL Habib Asset Management Limited ("AHAML" or the "AMC") reflects its solid position within the country’s asset management industry. This strong standing is supported by a well-structured and disciplined investment process, a sound governance framework, and a highly experienced and qualified management team. The AMC also benefits from its strategic association with Bank AL Habib Limited, one of the largest and most reputable banks in the commercial banking industry, which provides a significant competitive advantage through operational integration, brand trust, and distribution outreach. As of June 2025, AHAML’s market share increased to 7%, compared to 6% in the same period last year, reflecting consistent growth in its Assets Under Management (AUM). This improvement in market penetration has primarily been driven by the robust growth of its fixed income and money market offerings. At the same time, the AMC is making deliberate efforts to strengthen its presence in the equity fund category. Performance in the equity segment has remained well above the industry, with equity funds delivering strong returns over the trailing twelve-month period ending June 2025. This strong performance has helped enhance overall investor confidence. The AMC has made meaningful progress in expanding its retail investor base; approximately 33% of AUM originates from retail clients, while 67% comes from institutional and corporate clients. This mix reflects both the stickiness of retail funds and the depth of institutional relationships. As of June 2025, the average concentration of the top 10 investors in the total AUM was recorded at 40%, whereas related party holdings stood at a moderate 7%, indicating a reasonably diversified investor base.
From a financial perspective, AHAML’s total revenue increased by approximately 69% year-over-year to PKR 552.4mln, up from PKR 271.7mln in the corresponding period last year. This surge in topline was primarily fuelled by a 103% growth in management fee income, reflecting increased fund size and better market traction. In line with the revenue growth, the net profit rose substantially by ~195% to PKR 323.7mln (SPLY: PKR 109.6mln), demonstrating improved profitability and operational leverage.
Going forward, enhanced market penetration driven by a strengthened retail presence through digital channels and consistent fund performance will be critical. Additionally, monitoring and addressing the concentration level will remain a focus.

About the Entity
AHAML, incorporated in September 2005 as an unlisted public Company, is one of the growing Asset Management and Investment Advisory Companies in Pakistan and is licensed by the Securities and Exchange Commission of Pakistan (SECP) to carry out services under the Non-Banking Finance Companies Regulations. The Company is a wholly owned subsidiary of Bank AL Habib Limited. The Board comprises six members. Mr. Abbas D. Habib serves as the Chairperson of the Board and also holds the position of Chairperson at Bank Al Habib Limited. He is a Fellow Member of the Institute of Bankers Pakistan and brings over 40 years of extensive experience. The CEO, Mr. Kashif Rafi, has vast experience spanning over 23 years in the field of Investments and Fund Management.