JCR-VIS assigns positive outlook to Management Quality Rating of AKD Investment Management Limited

Karachi, December 30, 2015 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has maintained the Management Quality Rating of AKD Investment Management Limited (AKD-IML) at ‘AM3’ (AM-Three). Outlook on the assigned rating has been revised from ‘Stable’ to ‘Positive’. The previous rating action was announced on April 10, 2015.

The assigned rating to AKD-IML incorporates the company’s adequate investment process, improving controls and consistent fund performance whereby funds under management, particularly equity fund, have consistently outperformed the benchmark and peers. Revision in outlook reflects strengthening of the investment (research and fund management) and sales team which is expected to translate in improved market penetration and growth.

Assets under Management (AUMs) have showcased modest growth during FY15. However, AUMs under Separately Managed Accounts (SMAs) have shown sizeable growth. While diversification in investor base is adequate with sizeable retail investment in total AUMs, concentration in three of the five funds under management is on the higher side. The company had submitted a proposal for launch of Islamic fixed income and equity funds and is currently pursuing the matter with SECP for their approval.

Senior management team comprises experienced resources. Since last review, additional hiring has been undertaken in areas of Fund Management, Research and Sales team. Moreover, two qualified resources have been inducted in the internal audit function. Strengthening of the management team is considered important to ensure continuity in case of turnover which has historically remained high. Two key management positions including Head of Research and Corporate Sales are currently vacant. While having improved over time, overall control environment has room for further improvement.

For more information, contact:
Ms. Sobia Maqbool
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk

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