PACRA Maintains Asset Manager Rating of AKD Investment Management Limited : AsiaNet-Pakistan

PACRA Maintains Asset Manager Rating of AKD Investment Management Limited

August 9, 2019 | General Business News | Share:

Lahore, August 09, 2019 (PPI-OT): The rating incorporates the company’s corporate governance structure, experienced management team, structured investment management process. The rating reflects the company’s capacity to manage the risks inherent in asset management. However, the rating is constrained by relatively small market share ((less than) 1%) and high concentration in investor base. The company has a resourceful human resource base in order to strengthen the organizational structure and enhance the quality of processes.

The company’s AUM were at ~PKR 4.4bln at end June-19, depicted a decrease of ~24% as compared to AUM of ~PKR 5.8bln at end June-18. Due to outflow of the AUM, the overall market share of the company witnessed a decrease from 1% in June-18 to 0.8% in June-19. The diversification of AUM base among various fund categories and expansion in the fund slate along with improvements in the overall operating platform will bode well for the company. Meanwhile, customer outreach through different channels and fund performance in line with the rating remains imperative.

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.

For more information, contact:
Analyst
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
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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Category: General Business News