AL Habib Asset Management Limited ("AHAML" or the "AMC"), was incorporated in 2005, as an unlisted public limited Company. AHAML is licensed to carry out Asset Management and Investment Advisory services under the Non-Banking Finance Companies (Establishment and Regulations) Rules, 2003

The AMC is the financial arm of Bank AL Habib Limited (a AAA-rated bank) and Habib Group. It manages a range of Open-end Schemes across all broader categories, voluntary pension schemes and various discretionary and non-discretionary portfolios.

The AMC is among the fastest-growing Asset Management Companies in the industry, with Assets Under Management (AUM) witnessing moderate growth of approximately 15% since June 2025, capturing a 7% market share as of the end of June 2026.

The AMC offers a diversified range of investment solutions, comprising thirteen open-end mutual funds across multiple conventional and Shariah-compliant categories, two voluntary pension schemes, and Separately Managed Accounts (SMAs) under discretionary mandates. During the review period, AHAML further strengthened its product suite through the introduction of additional conventional and Shariah-compliant Fixed Return Fund Plans, alongside an expansion of its Shariah-compliant money market offerings.

As of June'26, the investor base remained adequately diversified, with the top 10 investors accounting for 33% of the total AUM, while related-party holdings remained contained at 7%.

The AMC is a wholly owned subsidiary of Bank AL Habib Limited (the "Bank"), one of Pakistan's leading conventional commercial banks.

The AMC's sponsor, Bank AL Habib, is one of the prominent banks in the commercial banking sector. The Bank has a widespread network of more than 1,329 branches all across Pakistan. The strong presence of sponsors in the financial sector is beneficial for the AMC.

Bank AL Habib holds long-term and short-term entity ratings of AAA and A1+, respectively. As of Dec'25, the Bank reported shareholders' equity of PKR 171.2bln and a profit after tax of PKR 30.6bln, reflecting its strong financial profile and earnings capacity. The sponsor has consistently demonstrated both the financial strength and willingness to extend support to the AMC whenever required.

The Board of Directors comprises six members, including the Chief Executive Officer, and represents an appropriate mix of executive, non-executive, and independent representation. The Board consists of three non-executive directors, two independent directors, and one executive director, ensuring balanced oversight and effective governance.

Mr. Abbas D. Habib serves as the Chairman of the Board and is also the Chairman of Bank AL Habib Limited. A Fellow Member of the Institute of Bankers Pakistan, he possesses over four decades of experience in the banking sector. Mr. Mansoor Ali, a non-executive director, currently serves as the Chief Executive Officer of Bank AL Habib Limited and brings more than 32 years of banking experience. Mr. Imran Azim, also a non-executive director, holds an MBA in Finance and has accumulated over three decades of experience in the asset management and mutual fund industry. Mr. Saeed Allawala an independent director, contributes extensive corporate governance experience through his leadership roles as Chairman of Atco Laboratories Limited and Softronic Systems (Private) Limited, while also serving on the boards of several reputable organizations. Ms. Zarine Aziz, an independent director and former President of First Women Bank Limited, is widely recognized for her leadership and significant contributions towards the socio-economic empowerment of women in Pakistan.

The Board provides strategic direction and effective oversight of the AMC's operations through a well-defined governance framework. Dedicated Board committees, including the Audit Committee and the Human Resource & Remuneration Committee, oversee key governance, financial reporting, internal controls, and human capital matters, thereby strengthening the overall control environment.

KPMG Taseer Hadi & Co., an SBP-approved 'A' category audit firm, issued an unmodified audit opinion on the financial statements for the year ended December 31, 2025, indicating that the financial statements present a true and fair view in all material respects.

The AMC operates under a well-structured and formalized organizational framework comprising eight departments: i) HR and Administration, ii) Compliance and Risk Management, iii) Business Development, iv) Investments and Research, v) Information Technology, vi) Finance, vii) Internal Audit, and viii) Operations. The reporting lines within the organization are clearly defined and segregated to ensure efficiency and accountability.

The management team is led by Mr. Kashif Rafi, Chief Executive Officer, who holds an MBA in Finance from IBA and possesses more than 23 years of extensive experience in Pakistan's asset management industry, having served in senior leadership positions at leading AMCs. He is supported by Mr. Zahid Hussain Vasnani, Chief Operating Officer, a Professional Accounting Affiliate of ICAP with 30 years of experience in financial services and capital markets. The finance function is headed by Mr. Abbas Qurban, Chief Financial Officer, who is a Fellow Member of ICMAP and PIPFA, a Diploma Holder from the Institute of Bankers Pakistan (IBP), and also holds an MBA in Finance. The senior management team is complemented by experienced professionals across key business functions, providing adequate operational depth and execution capabilities

From an operational perspective, the AMC utilizes Asset Connect, a widely recognized technology platform within Pakistan's asset management industry. The system integrates key functional modules, including the Unit Holder Module, Portfolio Management Module, and General Ledger (GL) Module, facilitating efficient transaction processing, portfolio administration, financial reporting, and operational monitoring.

The AMC has also established comprehensive policies and procedures covering information technology, investment research, operations, compliance, and risk management. Risk exposures, investment limits, and regulatory compliance are monitored through a combination of system-generated reports and internally developed monitoring tools, ensuring adherence to prescribed investment guidelines and regulatory requirements.

Credit risk arises from the potential that an obligor is either unwilling to perform on an obligation or its ability to perform such obligation is impaired, resulting in economic loss to the Fund and how much AMC is invested in its own funds. . To monitor credit risk, internal assessment modules are in place with a combination of qualitative and quantitative analysis. Excel-based credit risk scorecards are being used to provide statistical estimates for counterparty credit risk. In accordance with the investment guidelines approved by the Investment Committee. The fund management team remained aligned to monitor the investement portfoilo. The portfolio of financial instruments is broadly diversified in line with regulatory restrictions, and transactions are entered into with diverse, creditworthy counterparties, thereby mitigating any significant concentration of credit risk.

Every Fund is required to maintain a certain level of liquidity to meet its financial obligations. The risk management department monitors the liquidity profile of the AMC by tracking the maturities of financial assets and financial liabilities, and sufficient liquidity is maintained by investing a significant portion of the Fund's assets in highly liquid avenues. The management also keeps a close watch on the sale/repurchase of units, and where redemption pressure is anticipated to increase, appropriate cash levels are built up in advance.

Market risk comprising interest rate risk, equity risk, currency risk and commodity risk which fluctuates the value of a financial instrument. It comprises . The AMC has set appropriate metrics to measure exposure to market risk factors, and market risk is generally assessed using the Value at Risk (VaR) approach. Excel-based financial models are being used to measure the sensitivity of portfolio instruments to movements in interest rates and other relevant market variables, and the value of the portfolio is monitored on an ongoing basis to account for changes in economic variables or other events that may impact the market value of its constituents.

The AMC's Investment Committee comprises six members, including the Chief Executive Officer (CEO), Chief Operating Officer (COO), Head of Equity, Head of Fixed Income, and two Fund Managers. The Committee brings together representation from key investment, research, risk, and management functions, providing a balanced platform for evaluating investment decisions and monitoring portfolio performance.

The Investment Committee (IC) formally convenes on a fortnightly basis to review market developments, assess portfolio positioning, and deliberate on investment decisions. The regular interaction of the Committee provides a structured forum for evaluating investment opportunities, monitoring existing exposures, and ensuring that portfolio allocations remain aligned with the respective fund mandates and approved investment strategies. The composition of the IC, comprising senior management and experienced professionals from investment, research, fixed income, equity, and risk functions, is considered adequate for effective oversight of the investment process.

The AMC's research function is headed by Mr. Zuhair Abbasi, Head of Research, and operates under the overall oversight of the Chief Executive Officer. The research function supports the investment decision-making process through analysis of market trends, economic developments, and potential investment opportunities. For equity investments, the department utilizes Excel-based valuation models to assess companies fundamentals and derive indicative valuations.

The AMC continues to enhance its investor service framework through a range of customer-centric initiatives aimed at improving accessibility and service quality. Investors are facilitated through an online chat platform that enables them to seek investment-related guidance, submit queries, and register complaints efficiently

The AMC offers an online redemption facility, allowing investors to execute transactions conveniently through digital channels. The AMC offers a mobile application under the name “Al Habib Funds” which further enhances accessibility and convenience for investors by providing digital access to its investment services.

The AMC currently maintains a modest sales and distribution network. The AMC is capitalizing on Bank AL Habib's extensive branch network to broaden its outreach and enhance access to potential investors across the country. Effective utilization of the Bank's established distribution platform is expected to further improve the AMC's market visibility, facilitate customer acquisition, and support sustained growth in AUM. The ability to effectively leverage this network remains an important factor in strengthening the AMC's distribution capabilities and expanding its market share.

AL Habib Asset Management Limited's AUM's increased by 15% to PKR 290.6bln at end Jun'26 (Jun'25: PKR 252.9bln). This growth is predominantly driven by both conventional and Islamic money market categories. Diversifying fund slate to reduce dependence on single fund. The majority of the funds underperformed in their respective benchmarks.

The core income has shown an increase and recorded at PKR 2.8bln during CY25 (CY24: PKR 2.7bln). The AMC recorded a net profit of PKR 1.4bln for CY25 (CY24: 1.5bln), while profit for 3MCY26 stood at PKR 306mln, compared to PKR 324mln in the same period last year (3MCY25). The AMC's equity stood at PKR 4.8bln at end March'26 (March'25: PKR 4.5bln), comfortably meeting the minimum regulatory capital requirement of PKR 230mln.