PACRA Maintains Asset Manager Rating of Al Meezan Investment Management Limited.

Al Meezan Investment Management Limited (“Al Meezan” or the “AMC”) enjoys a leading position in Pakistan’s asset management landscape as the Country’s largest asset management company and a pioneer in Shariah-compliant investments. Its enduring market dominance is underpinned by a strong strategic vision, a reputable brand, and the stewardship of a highly seasoned and proficient management team. The assigned rating benefits from the AMC’s strong institutional backing, being part of one of the largest players in Pakistan’s banking sector. During CY25, the industry’s AUMs recorded growth of ~4%, reaching PKR 4.5trln (CY24: PKR 4.3trln). The money market category held the largest share at 56%, followed by the income category at 24% and the equity category at 20%. Growth in the equity category was primarily driven by stock market gains during CY25, along with a slight increase in fresh inflows. Meanwhile, Al Meezan maintained its industry-leading position, with AUMs standing to PKR 695bln (CY24: PKR 692bln). The AMC continues to maintain the largest market share of ~15% across both the Collective Investment Scheme (“CIS”), including the Voluntary Pension Scheme (“VPS”) segments, while retaining its leadership position within the Shariah-compliant mutual fund space with a market share of ~32% at the end of CY25. Its strong market penetration reflects the strength and scale of its franchise. While the granularity and stability of the AMC’s retail-driven investor base continue to provide resilience to its overall AUM composition. The AMC’s investor mix remains largely skewed towards retail investors, which constitute ~67% of the total investor base, while institutional investors account for the remaining 33%. The top 10 investors comprised ~14% of the total AUM at the end of CY25, indicating a reasonably diversified investor base with limited concentration. The AMC currently manages a diversified portfolio comprising twenty-seven funds across thirteen distinct Shariah-compliant categories, including a voluntary pension scheme. Al Meezan also retains a unique competitive advantage as the only AMC in Pakistan offering a commodity-based fund through Meezan Gold Fund. In parallel, the AMC has significantly accelerated its digital transformation strategy during CY25 through the introduction and enhancement of multiple customer-centric initiatives. The AMC is further enhancing its digital ecosystem through the revamping of Al Meezan Mobile App to a 360-degree financial wellness mobile application, AI-enabled chatbot solutions, centralized data warehousing infrastructure, and enhanced mobile security features. These initiatives reflect management’s strategic emphasis on operational scalability, digital innovation and long-term sustainability of Shariah-compliant digital investment solutions.
On the financial front, the AMC demonstrated strong growth during 6MFY26. The AMC’s topline increased by ~56% to PKR 3,921mln (6MFY25: PKR 2,510mln), primarily driven by a substantial increase in management fee income. Consequently, net profitability increased by ~31% to PKR 2,643mln (6MFY25: PKR 2,023mln), supported by higher management fee income and increased share of profit from associates. The AMC’s equity strengthened to PKR 7,208mln (FY25: PKR 6,014mln), remaining comfortably above the minimum regulatory capital requirement and providing adequate financial cushion to support future growth initiatives.
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, 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.