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: (i) a professional and experienced management team, (ii) a robust risk management framework, (iii) significant advancement in digital transformation, and (iv) strong market presence. A sound governance structure, complemented by effective board oversight, further strengthens the assigned rating. The AMC also benefits from a strong sponsor profile, with continued strategic and operational support from its parent bank, which reinforces the overall rating. ABL Funds manages a diversified portfolio comprising eighteen open-end funds, two voluntary pension schemes (VPS), and two KP pension funds, providing investors with a broad range of investment solutions. The product suite is well-rounded, encompassing both Conventional and Shariah-compliant offerings. The AMC continues to enhance its digital infrastructure through targeted IT investments aimed at improving retail penetration, distribution efficiency, and customer experience. Notable initiatives include the introduction of a web-based digital onboarding solution, complementing its existing mobile applications on Android and iOS platforms, alongside the rollout of an upgraded Online Services Portal with enhanced functionality. As a result, a significant portion of new accounts is now being opened through digital channels. Since June'24, the overall asset management industry has recorded growth of approximately 40% year-on-year. In comparison, ABL Funds achieved a robust 31% increase in assets under management (AUM), reaching PKR 260bln as of June'25 (June'24: PKR 198bln), translating into a market share of around 7%. A considerable number of the funds under management rank among the top performers in their respective categories. The clientele mix currently comprises 67% institutional and 33% retail investors, including high-net-worth individuals (HNWIs). Going forward, retail penetration in the portfolio is expected to increase, driven by the digital initiatives. Alongside its collective investment schemes (CIS), the AMC also manages a healthy portfolio of Separately Managed Accounts (SMAs), catering to both discretionary and non-discretionary clients. As of June'25, the Voluntary Pension Fund Management industry reported total AUMs of ~PKR 105.6bln, of which AMC manages ~PKR 1.8bln, representing a 2% market share.
On the financial front, management and commission income posted exceptional growth of 86%, reaching PKR 1,337mln for 6MCY25 (6MCY24: PKR 717mln). This strong performance stems from higher fund returns, increased retail participation, and an expanded distribution network. Profit after tax also nearly doubled to PKR 546mln in 6MCY25 from PKR 288mln in the same period last year, reflecting improved operational efficiency and sustained profitability. Liquidity remains comfortable, while the AMC’s equity base strengthened to PKR 5.3bln as of June'25, well above the minimum regulatory capital requirement.
The rating remains contingent on the management’s ability to successfully execute its business development plans while leveraging digital initiatives to enhance operations and market outreach. Sustained consistency in fund performance, alongside continued growth in profitability, will be critical. Furthermore, retention of key management personnel, adherence to strong corporate governance practices, and ongoing strengthening of the investment process remain important factors for the assigned rating.

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 1,512 branches, comprising 1,298 conventional, 198 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 23 years of expertise in Corporate and Investment Banking, Risk Management, and Commercial Banking.