PACRA Maintains Asset Manager Rating of ABL Asset Management Company Limited.

The rating assigned to ABL Asset Management Company Limited ("ABL Funds" or "the AMC") reflects its experienced management team, sound risk management framework, strong market presence, and effective board oversight. Going forward, consistency in fund performance, retention of key management personnel, adherence to sound corporate governance practices, and continued strengthening of the investment management process remain important considerations for the AMC. The AMC continues to benefit from a strong sponsor profile, with continued strategic and operational support from its parent, Allied Bank Limited (ABL). The overall industry AUM increased from ~PKR 3.7trln to ~PKR 4.3trln as at Jun'26, reflecting ~16% YoY growth. Within the industry, Shariah-compliant funds recorded stronger growth of 26.9%, compared with 7.7% growth in conventional funds. Against this backdrop, ABL Funds maintained its established market presence. ABL Funds manages a diversified portfolio comprising twenty-four open-end funds, two voluntary pension schemes and two KP pension funds. Following the launch of two GoPB pension funds in November 2025, the AMC's government pension offering has broadened to six schemes, spanning both conventional and Shariah-compliant categories. Total assets under management (open-end funds and voluntary/government pension schemes) stood at PKR 307.1bln as of June'26, up from PKR 260bln as of June'25, though moderated from PKR 348.7bln at December'25. The sequential decline was mainly driven by maturity-related redemptions in the ABL Fixed Rate Funds, whose net assets fell to PKR 29.7bln (Dec'25: PKR 70.2bln), and the full maturity of the ABL Islamic Fixed Term Fund (Dec'25: PKR 18.3bln). These were partly offset by growth in the ABL Special Savings Fund and ABL Islamic Money Market Fund. Fund performance remained mixed, with most funds trailing their respective benchmarks, particularly certain Shariah-compliant and asset allocation funds, while ABL Islamic Cash Fund was the only fund to outperform its benchmark. The clientele mix stood at 64% institutional and 36% retail by AUM, a modest improvement in retail share from 33% as of June'25, consistent with continuing retail penetration. Separately Managed Accounts inclined to a portfolio value of PKR 174.4bln across 34 clients, from PKR 171bln across 33 clients as June'25. On the financial front, revenue from customers eased to PKR 1,140.6mln for 6MCY26 (6MCY25: PKR 1,337.8mln), led by lower management fee income of PKR 1,121.3mln (6MCY25: PKR 1,304.8mln) amid the AUM contraction from the elevated December'25 base, alongside reduced advisory and sales-load income. Profit before tax declined to PKR 492.6mln (6MCY25: PKR 857.9mln) and profit after tax to PKR 306.2mln (6MCY25: PKR 545.9mln), with earnings per share of PKR 6.12 (6MCY25: PKR 10.92). Despite the moderation in earnings, the AMC's equity base strengthened to PKR 6.35bln as of June'26 (Dec'25: PKR 6.04bln), remaining well above the minimum regulatory capital requirement.
The rating remains contingent on successful execution of business development plans, effective use of digital initiatives, sustained fund performance, and continued profitability growth. Retention of key management, strong corporate governance, and further strengthening of the investment process remain important considerations.

About the Entity
Incorporated in 2007, ABL Asset Management Company Limited is a wholly owned subsidiary of Allied Bank Limited (ABL). ABL operates a nationwide network of 1,535 branches, comprising 1,214 conventional, 321 Islamic banking, and 18 digital branches. ABL Funds holds licenses for asset management, pension management, and investment advisory services. The AMC's board is composed of eight members, including the CEO. It includes one executive director, five non-executive directors, and two independent directors. Mr. Naveed Nasim, the CEO of ABL Funds, brings over 24 years of expertise in Corporate and Investment Banking, Risk Management, and Commercial Banking.