JCR-VIS upgrades Management Quality Rating of AKD Investment Management Limited

Karachi, April 10, 2015 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has upgraded the Management Quality Rating of AKD Investment Management Limited (AKDIML) from‘AM3-’ (AM-Three Minus) to ‘AM3’ (AM-Three). AKDIML had been placed under ‘Rating Watch Developing’ status on account of merger proposal with an asset management company, which is no longer being pursued. Therefore, ‘Rating Watch Developing’ status assigned to the rating has been removed. Outlook on the assigned rating is ‘Stable’. The previous rating action was announced on July 15, 2013.

AKDIML manages five funds with three in the equities category and one each in aggressive income and cash fund category. Assets under management have remained largely stagnant on a timeline basis. The overall performance of the funds has remained robust against their respective benchmarks and also vis-a-vis peers.

The management has embarked upon expanding business with the launch of Islamic funds to attract investors in order to increase AUMs. This will allow AKDIML to tap into the sizeable pool of Shari’ah savvy investors, while performance of other funds managed by the company may provide impetus to the marketing efforts.

AKDIML has recently experienced turnover at different management levels. The company has taken steps to strengthen management team by hiring a new head of research while the research team is currently being trained for wider scope of coverage.

Induction of a new fund manager is also under process. The company provides services to clients in Karachi, Lahore and Islamabad through their Karachi Head office, though expansion plans are in place to improve outreach. Management intends to re-organize the sales team before initiation of aforementioned expansion plan. Certain initiatives including strengthening of audit function is considered important for institutional augmentation.

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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