Press Release
VIS Reaffirms Management Quality Rating of Alfalah Asset Management Limited
Karachi, January 26, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the Management Quality Rating (MQR) of Alfalah Asset Limited (‘AAML’ or the ‘AMC’) at ‘AM1’ (AM One). The MQR of ‘AM1’ indicates that the asset manager exhibits excellent management characteristics. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on January 02, 2025.
AAML is jointly owned by MAB Investments Inc. and Bank Alfalah Limited (BAFL). MAB Investments operates under the patronage of H.H. Sheikh Nahayan bin Mubarak Al Nahayan, a member of Abu Dhabi’s ruling family and is also a shareholder of BAFL. BAFL is a leading commercial bank in Pakistan, rated ‘AAA’, with a strong domestic franchise and extensive branch network.
The assigned rating reflects AAML’s strong ownership profile, experienced governance and management, improving financial performance, and a robust control environment, supported by a strengthening market position within Pakistan’s asset management industry. However, relative fund performance continues to warrant more consistency.
AAML benefits from the strategic sponsorship of BAFL, which provides brand strength, financial flexibility, and access to a wide banking distribution network. Governance arrangements are considered sound, with a well-constituted Board and active committees overseeing audit, risk, investments, and human resources. Senior management is led by an experienced CEO with a long-standing track record in asset management.
The Company’s financial profile has strengthened materially over recent years, driven by rapid growth in assets under management translating into improved fee income. Market share in AUMs increased to approximately 7.5% by September 2025, driven primarily by money market and income funds, while some contribution was also witnessed from structured and pension-related products. Nevertheless, AUM concentration remains relatively high, with a significant portion of assets housed in a limited number of large money market funds.
Fund performance was mixed in FY25, with relative underperformance across several strategies compared to peers. Early signs of stabilization were observed in 1QFY26, particularly in money market and select newly launched funds. Sustained improvement in relative performance will be important to support longer-term franchise strength amid increasing competitive pressures.
AAML is licensed by the SECP to operate as an Asset Management Company and Investment Advisor, and to provide Pension Fund Management services. AAML also holds licenses to provide Private Equity and Venture Capital and REIT Management services, indicating its intent to evolve into a diversified, full-service asset manager, beyond traditional mutual funds. These alternative business lines are still in the development phase and effective execution, systems readiness, and talent depth will be key considerations for future ratings.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Asset Management Companies
https://docs.vis.com.pk/Methodologies%202024/AMC-Methodology-201906.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf