PACRA Maintains Asset Manager Rating of AKD Investment Management Limited

Lahore, December 22, 2017 (PPI-OT):The rating captures the company’s improved investment process, reasonably experienced management team, and enhancement in operating platform. The company experienced dip in its AUM base owing to lacklustre stock market performance, though largely maintaining its system share across Industry. AKDIML plans to diversify its fund slate under Shariah-Compliant category. The company continues to expand its human resource base in order to strengthen the organizational structure and enhance the quality of processes.

The rating takes cognizance of the company’s ability to outperform peer funds in equity category, distinguishing AKDIML in the domestic industry. However, it needs to witness performance improvement in the fixed income category. High concentration – both in terms of investors and type of mutual fund, and low contribution from the retail segment needs attention.

The rating is dependent upon the company’s ability to successfully execute its business strategy encompassing enhancement in system share and expanding the retail investor base. Diversification of its existing fund slate in the Shariah-Compliant category would help in boosting the AUM base of the company. Upholding existing organization structure along with retention of key human resource remains imperative for AKDIML. At the same time, liquidity management, given certain exposure to illiquid stocks, remains important.

For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425

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