The Pakistan Credit Rating Agency Limited
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Ayesha Qasim

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PACRA Maintains Asset Manager Rating of AKD Investment Management Limited

Rating Type Asset Manager
(08-Feb-19 )
(10-Aug-18 )
Action Maintain Maintain
AM Rating AM3++ AM3++
Outlook Stable Stable
Rating Watch - -

The rating reflects the company's strong governance profile, experienced and qualified management team, structured investment management framework and improving fund slate.
The rating incorporates the company’s established performance track record in equity category. However, the same needs to be translated in fixed income category. At end Dec-18, the assets under management declined by ~6%, due to high reliance on equity funds. The rating is constrained by relatively small market share (<1%) and high concentration in investor base. Lately, the profitability of the company has come under pressure on the back of subdued performance of capital markets.

The rating is dependent on materialization of the management’s efforts to increase its market share, while achieving diversity in investor as well as an overall asset base. The company’s ability to successfully execute its business strategy and optimal utilization of its resources and group name remains imperative. Meanwhile, sustained fund performance and strengthening of core process is critical.

About the Entity
AKD Investment Management Limited commenced its operations in September 2004. The company is registered as an Asset Management Company under the Non-Banking Finance Companies Rules, 2003. The company is sponsored by Aqeel Karim Dhedhi Securities (Pvt) Limited (99.97% ownership). Aqeel Karim Dhedhi Securities (Pvt) Limited is majority owned by Mr. Aqeel Karim Dhedhi, Chairman of the AKD Group, a renowned figure in Pakistan's capital market.

The Board of Directors of the company comprise seven members, including the CEO Mr. Imran Motiwala, who has been serving as the Chief Executive Officer of AKD Investment Management Limited since 2009. The company is currently managing six open-end funds and one closed-end fund with assets under management of ~PKR 5.1 billion at end Dec-18.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.