PACRA Maintains Asset Manager Rating of Alfalah Asset Management Limited

Alfalah Asset Management Limited (“AAML” or the “AMC”), backed by the strong financial support of Bank Alfalah Limited and MAB Investments, remains one of the largest AMCs in Pakistan with a diversified fund slate across conventional and Shariah-compliant categories, including CIS, VPS, ETFs, and Fund of Funds. The AMC demonstrated resilience during the first quarter of 2025, supported by its robust control environment, structured investment processes, and digital transformation drive. Amid Pakistan’s gradually stabilising macroeconomic landscape—reflected in easing inflation, declining interest rates, and strengthening FX reserves—AAML repositioned its fund mix with a slight tilt toward equity funds, all of which outperformed benchmarks with lucrative returns. The Company has also expanded and diversified its product offering following the integration of newly acquired portfolios from Faysal Funds, enhancing its ability to cater to varying investor risk appetites and time horizons. While this has increased fund variety, AAML continues to emphasise differentiation strategies to ensure that its product suite remains aligned with investor needs across money market, fixed income, and equity segments. Alongside this, AAML has strengthened its digital offerings, enabling seamless investment and redemption options, while reinforcing IT and information security controls to address emerging cyber risks in line with the industry’s digital shift. Despite regulator-led changes such as capping of the total expense ratio, the Company’s diversified revenue streams, strong governance framework, and synergy with its sponsor bank position it well for sustained growth.
On the financial side, AAML reported closing AUMs of PKR 291.6bln as of Jun'25, reflecting a 13.1% decline from Dec'24 (PKR 337.3bln). The management fee of the AMC improved to PKR 1,276mln during 6MCY25 (6MCY24: PKR 590mln; CY24: PKR 1,800mln). The profit after tax stood at PKR 337mln during the 6MCY25 (6MCY24: PKR 160mln; CY24: PKR 638mln). The AMC maintains a strong equity base of PKR 2.8bln during 6MCY25 (CY24: PKR 2.4bln), well above regulatory requirements, further reinforced by the synergies with its sponsor Bank Alfalah (rated “AAA”) and the long-term backing of MAB Investments.
Sustainable profitability, market share, and fund performance would provide support to the ratings. While materialization of the initiatives as represented by the management would remain imperative to the ratings.

About the Entity
Alfalah Asset Management Limited was incorporated on Oct 18, 2004 as an unlisted public limited company and is licensed by SECP to manage open-ended mutual funds, offer investment advisory services, manage pension funds, conduct REIT and Private Funds managed businesses. The Company's current ownership structure stands with MAB Investments Inc. (~59.8%) and BAFL (~40.2%). The Company’s board of directors comprise seven members including the Chairman. Mr. Atif Bajwa has chaired the Board. He has an extensive international career spanning more than 40 years of executive leadership roles in banking, and of multiple boards and public interest positions. The CEO - Khuldoon Bin Latif has joined the AMC in Mar'23 and has diversified experience in capital markets for over 21 years.