PACRA Maintains Asset Manager Rating of Al Meezan Investment Management Limited

Al Meezan Investment Management Limited (“Al Meezan” or the “AMC”) holds a distinguished position as Pakistan’s largest asset management company, with a clear competitive edge as the pioneer and leading Shariah-compliant asset manager in the country. Its sustained market leadership is underpinned by a strong strategic vision, a reputable brand, and a capable, experienced management team. The assigned rating also benefits from the AMC’s strong institutional backing, being part of one of the largest players in Pakistan’s banking sector. Robust corporate governance, supported by well-structured board committees, further reinforces the rating. In line with best practices, Al Meezan has strengthened its internal control framework through the segregation of its Compliance, Risk, and Audit functions. The AMC’s core offerings include Collective Investment Schemes (CIS), Voluntary Pension Schemes (VPS), and investment advisory services. Currently, Al Meezan manages a diverse portfolio of twenty funds across nine distinct Shariah-compliant categories, including a voluntary pension scheme. Notably, it is the only AMC in the industry offering a commodity-based fund, namely the Meezan Gold Fund and MTPF-Gold Sub Fund. Al Meezan continues to lead the industry with the highest market share in both CIS and VPS segments. Since FY24, the AMC has grown significantly by ~38%. The AMC has strategically redirected its fund allocations toward fixed income instruments, aligning with the evolving preferences and risk appetite of its investor base. This shift is aimed at enhancing stability in returns while preserving capital. During 6MFY25, the Shariah-compliant mutual fund segment within Pakistan's mutual fund industry saw significant growth to PKR 1.8tln. The AMC continues to maintain its leadership position within the Shariah compliant mutual fund market, with its market share currently standing at 37%. Additionally, AMC holds 16% of overall mutual fund industry of Pakistan. The high contribution from retail market supports the stickiness and granularity of the AUM base. To keep pace with the evolving technological landscape, the AMC has expanded its distribution network through digital channels. This includes the launch of a comprehensive 360-degree mobile application, offering end-to-end solutions for investments, redemptions, and online account opening via both the app and web portal. The introduction of 24/7 IBFT facility has simplified the redemption process, enhancing convenience for investors. As a result, AUM inflows through digital channels are witnessing a steady growth.
On the financial side, the AMC experienced positive growth during the period under review. During 6MFY25, the AMC's topline increased by ~93% to PKR 3,005mln (SPLY: PKR 1,552mln). Moreover, the net profit during 6MFY25 increased by ~67% to PKR 2,023mln (SPLY: PKR 1,210mln) on the back of ~75% rise in management fee and a 26 times increase in share of profit from associates. The AMC's equity stood at PKR 5,468mln at end 6MFY25, comfortably exceeding the regulatory requirement.
The rating is contingent on the AMC’s ability to maintain its market share, uphold robust investment processes, and consistently deliver fund performance that ranks in the top quartile.

About the Entity
Al Meezan Investment Management Limited, established in 1995, is licensed by the SECP to carry out asset management and investment advisory business. Meezan Bank Limited is the largest shareholder of the AMC with a stake of 65%, followed by Pakistan Kuwait Investment Company Limited with 30% shareholding. The AMC's board is composed of ten members, including the CEO, with representation of four members from Meezan Bank, two representatives of Pak Kuwait Investment Company Limited, and three independent directors.