Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has upgraded the asset manager rating of AKD Investment Management Limited, citing the company's resilience in volatile market conditions and the robust support from its sponsors. This upgrade reflects sustained progress over time, as AKD has adeptly navigated a challenging environment.
AKD Investment Management Limited, known for managing a diverse portfolio of funds, has been proactive in digital initiatives to meet the demands of the rapidly changing market landscape. The company also manages investment advisory portfolios, contributing positively to its core income.
Since December 2023, the asset management industry has experienced substantial growth, with total Assets Under Management (AUMs) reaching PKR 4.3 trillion by December 2024. This growth has been noted across major categories, including Equity, Money Market, and Income, each expanding by over 100%.
Despite the rapid industry expansion, AKD has maintained its market share, recording notable growth in the Golden Arrow Stock Fund and AKD Cash Fund. The performance of its funds has remained largely in line with industry averages, and the company's research function remains critical to fund performance.
The company's clientele is primarily composed of retail clients, accounting for 57% of the investor base, with institutional investors making up the remaining 43%. As of the calendar year 2024, the top 10 investors held a concentration of approximately 39.4%.
Financially, AKD reported a profit after tax of PKR 115 million, with equity standing at PKR 409 million. Sponsors have injected PKR 100 million to support ongoing business growth, with an expectation for the equity base to exceed PKR 500 million. Additional seed capital is anticipated for an upcoming fund.
Looking ahead, the successful execution of AKD's business strategy following the capital injection will be crucial to maintaining its rating. Key areas of focus include sustainable business growth, consistent fund performance, reducing investor concentration, and expanding into other fund segments.