Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the asset manager rating of AL Habib Asset Management Limited (AHAML), reflecting the company’s enhanced market share and robust financial performance. The rating upgrade underscores AHAML’s structured investment process, strong governance, and the support from its parent company, Bank AL Habib Limited.

According to The Pakistan Credit Rating Agency Limited, AHAML’s market share increased significantly to 5.5% as of March 2024, up from 3.7% the previous year. This growth is largely attributed to the performance of the AL Habib Cash Fund, AL Habib Islamic Cash Fund, and AL Habib Money Market Fund, alongside efforts to expand in the equity sector. AHAML now manages a diverse portfolio of twelve funds across conventional and Shariah-compliant categories, maintaining a risk-averse approach with a focus on government securities and high-rated investments.

Financially, AHAML demonstrated considerable growth in the first quarter of 2024. The company’s revenue saw a 166% increase to PKR 352.4 million, and net profit rose by 170% to PKR 190.6 million, driven by a substantial rise in management fees and a significant increase in capital gains from investments. This financial strength is further enhanced by the company’s adherence to regulatory requirements, with equity standing at PKR 1.67 billion at the end of March 2024.

Moving forward, the key to sustaining this rating will be AHAML’s ability to grow assets under management (AUM), stabilize market share, and maintain strong equity levels. Continued strong fund performance and adherence to a robust investment process will be essential for future success.