Karachi: JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the Management Quality rating of AKD Investment Management Limited (AKDIML) from ‘AM3’ (AM Three) to ‘AM3-’ (AM Three Minus). Outlook on the assigned rating is ‘Stable’.
Assets under management of AKDIML were maintained at around Rs. 2b by end-Feb’12 on account of improvement in market value of equity investments held in its three equity based funds. The AMC has recently launched a money market fund, which has increased the collective schemes under management to five.
There has been some success in attracting investment advisory clients; though, there has also been some attrition in the same. Firewalls need to be established between investment advisory services and management of collective investment schemes. There is also room for improvement on policy documentation and implementation side.
There has been significant turnover in the institution and weakening in organizational infrastructure. Employee turnover is partly attributable to cost-cutting measures undertaken by the company. The management is working on developing an employee retention policy and is also making efforts to fill important positions on an urgent basis.
Performance of two equity funds under management (AKD Opportunity Fund and Golden Arrow Selected Stocks Fund Limited) for FY10 and FY11 does not compare favourably to peers and benchmark. Returns have showcased an uptick in recent weeks coupled with significant improvement in relative ranking of equity funds under management on a year to date basis. Consistency of risk-adjusted returns will be tracked over a longer term. Performance of aggressive income fund under management has been higher than peer group average in the past two and a half years; however, it has underperformed its benchmark.
For more information, contact:
Mr. Javed Callea
JCR-VIS Credit Rating Company Limited
Tel: +9221 35311861 (10 lines) (Ext: 501)
Fax: +9221 35311872-3
E mail: email@example.com