Pakistan’s mutual fund industry witnessed a strategic realignment in asset allocation during February 2026, as investors pivoted toward lower-risk instruments amid market volatility. According to the latest data compiled by Arif Habib Limited (AHL), total equity Assets Under Management (AUMs) contracted by 9 percent month-on-month, settling at Rs678 billion. While the broader industry’s total AUMs saw a minor overall dip to Rs4,309 billion, there was a visible rotation into the fixed-income space; debt-based AUMs grew by 2 percent to reach Rs3,632 billion. By the end of the month, equity exposure represented only 16 percent of the total industry portfolio, reflecting a cautious stance from both retail and institutional participants.
In the competitive landscape of asset management, Al Meezan Investment Management continued its dominance in the Shariah-compliant sector. With Rs103 billion in equity AUMs, the firm maintains a commanding 32 percent market share of all Islamic equity holdings. On the conventional side, the National Investment Trust Limited (NIT) maintained its leadership position with Rs91 billion, accounting for 13 percent of the total equity AUMs across the industry. Despite the overall reduction in equity valuations, fund managers demonstrated a high conviction in a narrow selection of blue-chip stocks, with the top 30 holdings making up over 63 percent of total industry equity exposure.
Individual stock data reveals that the energy and fertilizer sectors remain the preferred targets for professional managers. Oil & Gas Development Company (OGDC) emerged as the most widely held stock, featured in the portfolios of 89 different funds with a total market value of over Rs47 billion. Other highly popular picks included Lucky Cement (LUCK) and Fauji Fertilizer Company (FFC), appearing in 85 and 82 funds respectively. Interestingly, while OGDC leads in the number of funds, Pakistan State Oil (PSO) shows the highest ownership concentration by volume, with mutual funds collectively controlling 42.7 percent of its total free float.
Performance within the top ten holdings showed significant divergence during the month. While Mari Petroleum (MARI) saw a valuation dip of 11.9 percent in fund portfolios, other major players like Engro Holdings (ENGROH) and Meezan Bank (MEBL) recorded double-digit growth in their respective holding values, rising by 14.8 percent and 14.4 percent month-on-month. These shifts underscore a tactical rebalancing by fund managers who are increasingly prioritizing value and dividend yields in the banking and energy sectors as the broader market navigates regional economic pressures.
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