AKD Investment Management Limited

RATING REPORT | May-26

Logo
Rating History
Dissemination Date Rating Outlook Action Rating Watch
07-May-26 AM2 Stable Maintain -
07-May-25 AM2 Stable Upgrade -
27-Jun-24 AM3++ Positive Maintain -
27-Jun-23 AM3++ Positive Maintain -
30-Jun-22 AM3++ Positive Maintain -
About the Entity

AKDIML commenced its operations in September 2004 and is registered as an Asset Management Company under the Non-Banking Finance Companies Rules, 2003. The AMC is sponsored by AKD Group Holdings (Private) Limited. The Board of Directors of the AMC comprises seven members, including the CEO, Mr. Imran Motiwala, who has been serving as the Chief Executive Officer of AKD Investment Management Limited since 2009.

Rating Rationale

The assigned rating reflects AKD Investment Management Limited’s (“AKD” or the “AMC”) draws support from the sponsors’ continued backing and the management’s capacity to adapt to evolving market conditions. The AMC maintains a diversified fund portfolio and is progressively enhancing its capabilities to remain aligned with the changing investment environment. Furthermore, the AMC is also engaged in managing advisory mandates, generating fee-based income that adds positively to its overall revenue stream. During CY25, the industry’s AUMs recorded modest growth of around 4%, reaching PKR 4.5 trillion (Dec’24: PKR 4.3 trillion). The money market category held the largest share at 56%, followed by the income category at 24% and the equity category at 20%. Growth in the equity category was primarily driven by stock market gains during CY25, along with a slight increase in fresh inflows. The overall performance of the AMC’s funds has remained broadly aligned with industry benchmarks. The AMC currently manages a total of eight funds, out of which three have outperformed their respective benchmarks. In particular, the AKD Aggressive Income Fund has demonstrated strong performance. Going forward, the effectiveness of the research function and investment strategy will remain critical for sustaining performance and competitiveness. In terms of clientele mix, the AMC continues to maintain a strong retail footprint, with approximately 52% of its investor base comprising retail clients, while the remaining 48% consists of institutional investors. However, the concentration of the top investors remains on the higher side at 46%, which may expose the AMC to redemption pressure in case of large withdrawals. On the financial front, the AMC has demonstrated strong profitability during 6MFY26, reporting a profit after tax (PAT) of PKR 208 million (6MFY25: PKR 115 million). The AMC generated a total income of PKR 287 million, supported by investment and advisory streams. The cost structure remained manageable, with operating expenses of PKR 93 million, resulting in healthy earnings. The AMC’s balance sheet remains robust, with total assets of PKR 825 million and an equity base of PKR 706 million, indicating adequate capitalization and financial stability. The AMC rating takes into account competitive pressures in the asset management industry, fund performance relative to peers, and investor concentration levels.

Key Rating Drivers

Going forward, the effective execution of the AMC’s business strategy will remain critical for sustaining the assigned rating. Key considerations will include achieving sustainable business growth, maintaining consistent fund performance, reducing investor concentration, and ensuring adequate penetration in the other fund segment.

REPORT CONTENTS
  1. Rating Analysis
  2. Financial Summary
  3. Rating Scale
  4. Regulatory Disclosure

AKD Investment Management Limited

rating analysis

Logo
Profile
Structure

AKD Investment Management Limited ("AKDIML" or the "AMC") is a public limited unlisted company.


Background

The AMC was incorporated in 2004 and is part of AKD Group. The group specializes in capital markets through its brokerage, investment advisory, and asset management.


Market Share

The current market share of the AMC is 0.3% at end Mar'26. (March'25: 0.3%).


Diversification of Fund Mix

The fund slate is composed of 08 open-end funds belonging to all major categories. These include aggressive fixed income, money market, index tracker, equity, shariah compliant equity, shariah compliant money market and shariah compliant income.


Investor Concentration

As of end-December 2025, the average concentration of the top 10 investors stood at 45.8% of total AUMs, reflecting a moderate level of potential redemption pressure due to investor concentration. Additionally, related party holdings accounted for 17.41% of the total AUM, indicating a notable, though manageable, level of internal stake in the overall portfolio.


Ownership
Ownership Structure

The AMC is a wholly owned subsidiary of AKD Group Holdings (Private) Limited, which holds approximately 99.97% of its shares. The remaining stake is distributed among five directors and Mr. Faisal Bengali, the former CEO of the AMC.


Business Acumen

The sponsor, AKD Group Holdings (Private) Limited, continues to demonstrate strong financial strength, supported by its diversified and profitable business portfolio. The Group’s areas of diversification include Asset management, Brokerage, Technology, Energy and real estate sectors of Pakistan, which collectively contribute to its overall stability and earnings resilience.


Financial Strength

The financial strength of the sponsor, AKD Group Holdings (Private) Limited, remains strong due to its diversified profitable businesses


Governance
Board Structure

The AMC’s Board consists of seven members, including the CEO, Mr. Imran Motiwala. It includes two independent directors, three non-executive directors, and two executive directors.


Members’ Profile

Mr. Khalid Mahmood serves as the Chairperson of AKDIML. He is a former CSS officer with experience in the Pakistan Customs Service and holds an MBA along with a Master’s degree in Political Science. Mr. Imran Motiwala, CEO and an executive director, brings nearly three decades of experience in capital markets and has been associated with the Board since 2009. Mr. Ali Wahab Siddiqui is a non-executive director and seasoned banker with over 23 years of experience in investment banking, capital markets, and business development. Ms. Anum Dhedhi serves as an executive director and Chief Investment Officer, with 15 years of experience in investment strategy and capital market research. She has been associated with the Board since October 2017. Mr. Hasan Ahmed is a non-executive director with over two decades of experience in finance, taxation, and corporate leadership. He has been serving on the Board since 2014. Ms. Aysha Ahmed Murtaza is a non-executive director with 21 years of diversified experience as an entrepreneur, consultant, and financial analyst. She has been associated with the Board since 2016. Mr. Abid Hussain is an independent director with 26 years of experience in marketing, corporate liability, and business development. He joined the Board in May 2023.


Board Effectiveness

The AMC’s Board holds primary responsibility for setting up and overseeing the risk management framework. To support this function, the Board has constituted two committees: (i) the Audit and Risk Management Committee and (ii) the Human Resource, Remuneration, and Nomination Committee. Additionally, the AMC maintains an internal audit function that operates in-house and reports directly to the Audit and Risk Management Committee.


Transparency

The AMC has appointed Riaz Ahmed & Co., Chartered Accountants, which is classified in the “A” category by the SBP, as its statutory auditor for FY26. The auditor has issued an unmodified conclusion on the financial statements of the AMC.


Management
Organizational Structure

The AMC has a clearly defined organizational structure, comprising nine departments operating under the supervision of the CEO. Within this framework, the Research and Fund Management departments report to the CIO, who subsequently reports to the CEO. Other departments are operations & cooperate affairs, strategy & Business Intelligence, Complaince, Information Technology, Administration & HR and Accounts & Finance.


Management Team

The senior management of the AMC comprises qualified and experienced professionals. Mr. Muzzamil Balagamwala was appointed as the Chief Financial Officer (CFO) of AKD Investment Management Limited on January 8, 2026. He is a Chartered Accountant and brings approximately seven years of overall professional experience.The COO, Mr. Muhammad Yaqoob, CFA has twenty years of experience. He is supported by an experienced core management team having long association with the AMC. Ms. Anum Aqeel Dhedhi, CIO, holds a BSc in Financial Economics from the City University of London, United Kingdom. The Company has strengthened its leadership team with the strategic appointment of Mr. Muhammad Faisal  (Chief Strategic Officer) and Mr. Tahir Hasan (Head of Trading) to key senior positions. They bring average of over 30 years experience—a move that underscores the Company’s commitment to enhancing its strategic capabilities.


Technology Infrastructure

Previously, the AMC used an in-house asset management system named “FunDXs.” In May 2024, it successfully migrated to an outsourced software solution provided by ITMinds. The AMC now operates a comprehensive online investor portal that enables smooth and efficient investment transactions. In addition, dedicated mobile applications are available for both Android and iOS users, offering improved accessibility and user convenience. The AMC also provides a WhatsApp chatbot service, allowing investors to easily carry out transactions and access account statements and balance information.


Control Environment

The AMC has established comprehensive policies covering IT, operations, research, investments, and risk management. It also utilizes dedicated software that provides timely alerts in case of any breaches in exposure limits and prescribed margins. The internal audit function, working on behalf board, is responsible for providing independent assurance to board or its audit committee on the quality, effectiveness and adequacy of governance, risk management and control environment.


Investment Risk Management
Credit Risk

The AMC has implemented an internal risk evaluation framework to assess the overall portfolio risk. Clearly defined exposure and margin limits are in place, supported by effective controls to ensure compliance with allocation thresholds. Moreover, cash balances are maintained with reputable banks that possess strong external credit quality.


Liquidity Profile

The risk management department prepares liquidity and redemption risk reports for equity funds, identifying liquid securities that can meet significant redemption pressures under both normal and stressed market conditions without causing undue losses or adversely impacting the AMC’s reputation.


Market Risk

The risk management department adheres to internal risk management policies and prepares stress testing reports in accordance with SECP guidelines. These reports incorporate the impact of interest rate volatility on the fixed income portfolio managed by the AMC.


Portfolio Management
IC Composition

The Investment Committee of the AMC consists of six members, including the CEO, COO, CIO, Chief Strategic Officer, and the Fund Managers.


Effectiveness

The Investment Committee (IC) holds formal meetings on a regular basis to make investment decisions and oversee the performance of the funds.


Investment Research and Analysis

The Research Department reports directly to the CIO. At present, the Research & Investment function comprises five members, including the CIO, Head of Trading, Fund managers and investment analysts.


Customer Relationship
Investor Services

The AMC publishes its fund manager reports on its website in a timely manner. In addition, it has partnered with 1-Link to enable investors to carry out ATM-based redemptions through banks across the country.


Investor Reporting

The AMC’s website serves as a reporting platform for sharing information related to the company and its managed funds. It provides details such as NAV history, fund performance, product features, and other key announcements.


Distribution and Sales Network

The AMC’s sales team consists of six members, including the Director of Corporate Sales and the Head of Retail Sales.


Performance
Asset Under Management

The AMC's assets under management currently stood at ~PKR 12bln at end Mar'26 (Mar'25: PKR 9.7bln). The AMC's money market and income categories have shown an inclining trend. Funds in the income category remained in line with the industry averages and posted returns above benchmarks. Consistent fund performance with above-average returns is imperative.


Asset Manager

During 6MFY26, the management fee has inclined to ~113mln (6MFY25: PKR 61mln). The profitability of the AMC took a major jump to PKR 208mln during the period (6MFY25: PKR 115mln). Other income, majorly surplus on revaluation of investments, contributed to the increase in profitabilty. The equity of the AMC stood at PKR ~706mln, which is above the minimum capital requirement.
 
 

May-26

www.pacra.com

AKD Investment Management Limited

funds performance

(AKD Investment Management Limited)

Logo
Sr. No. Fund Name Category Launch Date Weight (%) AUMs (PKR' 000) Return | Rolling 12 Months (Mar'25-Mar'26) Stability Rating
Mar-26 Dec-25 Sep-25 Jun-25 Mar-25 Return Benchmark Industry Average Fund vs. Benchmark
Conventional Funds
1 AKD Cash Fund Money Market 20-Jan-12 19.7% 2,373,419 2,157,517 2,134,359 1,820,684 2,031,759 10.3% 10.7% -0.4% AA+
2 Golden Arrow Stock Fund (Formerly: Golden Arrow Selected Stocks Fund) Equity Sep 2004 23.7% 2,860,757 3,729,350 4,193,417 2,748,003 2,481,141 13.4% 26.3% -12.9%
3 AKD Opportunity Fund Equity 31-Mar-06 5.5% 667,670 882,574 948,513 708,551 745,006 20.7% 26.3% -5.5%
4 AKD Aggressive Income Fund (Formerly: AKD Income Fund) Aggressive Fixed Income 22-Mar-07 10.0% 1,202,569 1,167,664 1,189,280 1,085,671 828,630 30.9% 11.3% 19.7% A+
5 AKD Index Tracker Fund Index Tracker 11-Oct-05 14.2% 1,713,731 1,931,511 1,798,484 1,301,928 1,224,493 24.9% 26.3% -1.4%
73% 8,818,146 9,868,616 10,264,053 7,664,837 7,311,029 - - - - -
Shariah Complaint Funds
6 AKD Islamic Income Fund Shariah Compliant Income 20-Feb-18 19.3% 2,326,951 2,032,687 1,759,427 1,306,637 1,340,378 10.3% 9.7% 0.5% AA-
7 AKD Islamic Stock Fund Shariah Compliant Equity 20-Feb-18 2.3% 277,317 590,123 559,025 432,431 418,375 11.1% 17.8% -6.7%
8 AKD Islamic Cash Fund( Formely : AKD Islamic Daily Dividend Fund) Shariah Compliant Money Market 17-Feb-23 5.4% 645,693 522,445 241,106 271,914 221,643 11.0% 9.6% 1.5% AA
Sum 27% 3,249,960 3,145,255 2,559,557 2,010,981 1,980,396
Grand Total 100% 12,068,106 13,013,871 12,823,611 9,675,818 9,291,426

May-26

www.pacra.com

AKD Investment Management Limited

rating scale

Logo

May-26

www.pacra.com

AKD Investment Management Limited

regulatory disclosure

Logo
  1. Rating Team Statements
    1. Rating is just an opinion about the creditworthiness of the entity and does not constitute a recommendation to buy, hold, or sell any security of the entity rated or to buy, hold, or sell the security rated, as the case may be. (Chapter III; 14-3-(x))
    2. Conflict of Interest
      1. The Rating Team or any of their family members have no interest in this rating (Chapter III; 12-2-(j))
      2. PACRA, the analysts involved in the rating process, and members of its rating committee and their family members do not have any conflict of interest relating to the rating done by them (Chapter III; 12-2-(e) & (k))
      3. The analyst is not a substantial shareholder of the customer being rated by PACRA [Annexure F; d-(ii)]
      4. Explanation: for the purpose of the above clause, the term "family members" shall include only those family members who are dependent on the analyst and members of the rating committee.
  2. Restrictions
    1. No director, officer, or employee of PACRA communicates the information acquired by him for use for rating purposes to any other person, except where required under law to do so. (Chapter III; 10-(5))
    2. PACRA does not disclose or discuss with outside parties or make improper use of the non-public information which has come to its knowledge during a business relationship with the customer. (Chapter III; 10-7-(d))
    3. PACRA does not make proposals or recommendations regarding the activities of rated entities that could impact a credit rating of the entity subject to rating. (Chapter III; 10-7-(k))
  3. Conduct of Business
    1. PACRA fulfills its obligations in a fair, efficient, transparent, and ethical manner and renders high standards of services in performing its functions and obligations. (Chapter III; 11-A-(a))
    2. PACRA uses due care in the preparation of this Rating Report. Our information has been obtained from sources we consider to be reliable, but its accuracy or completeness is not guaranteed. PACRA does not, in every instance, independently verify or validate information received in the rating process or in preparing this Rating Report. (Clause 11-(A)(p))
    3. PACRA prohibits its employees and analysts from soliciting money, gifts, or favors from anyone with whom PACRA conducts business. (Chapter III; 11-A-(q))
    4. PACRA ensures before the commencement of the rating process that an analyst or employee has not had a recent employment or other significant business or personal relationship with the rated entity that may cause or may be perceived as causing a conflict of interest. (Chapter III; 11-A-(r))
    5. PACRA maintains the principle of integrity in seeking rating business. (Chapter III; 11-A-(u))
    6. PACRA promptly investigates in the event of misconduct or a breach of the policies, procedures, and controls, and takes appropriate steps to rectify any weaknesses to prevent any recurrence, along with suitable punitive action against the responsible employee(s). (Chapter III; 11-B-(m))
  4. Independence & Conflict of Interest
    1. PACRA receives compensation from the entity being rated or any third party for the rating services it offers. The receipt of this compensation has no influence on PACRA’s opinions or other analytical processes. In all instances, PACRA is committed to preserving the objectivity, integrity, and independence of its ratings. Our relationship is governed by two distinct mandates: i) rating mandate - signed with the entity being rated or issuer of the debt instrument, and ii) fee mandate - signed with the payer, which can be different from the entity.
    2. PACRA does not provide consultancy/advisory services or other services to any of its customers or their associated companies and associated undertakings that are being rated or have been rated by it during the preceding three years, unless it has an adequate mechanism in place ensuring that the provision of such services does not lead to a conflict of interest situation with its rating activities. (Chapter III; 12-2-(d))
    3. PACRA discloses that no shareholder directly or indirectly holding 10% or more of the share capital of PACRA also holds directly or indirectly 10% or more of the share capital of the entity which is subject to rating or the entity which issued the instrument subject to rating by PACRA. (Chapter III; 12-2-(f))
    4. PACRA ensures that the rating assigned to an entity or instrument is not affected by the existence of a business relationship between PACRA and the entity or any other party, or the non-existence of such a relationship. (Chapter III; 12-2-(i))
    5. PACRA ensures that the analysts or any of their family members shall not buy, sell, or engage in any transaction in any security which falls in the analyst’s area of primary analytical responsibility. This clause, however, does not apply to investments in securities through collective investment schemes. (Chapter III; 12-2-(l))
    6. PACRA has established policies and procedures governing investments and trading in securities by its employees and for monitoring the same to prevent insider trading, market manipulation, or any other market abuse. (Chapter III; 11-B-(g))
  5. Monitoring and Review
    1. PACRA monitors all the outstanding ratings continuously, and any potential change therein due to any event associated with the issuer, the security arrangement, the industry, etc., is disseminated to the market immediately and in an effective manner after appropriate consultation with the entity/issuer. (Chapter III; 17-(a))
    2. PACRA reviews all the outstanding ratings periodically on an annual basis. Provided that public dissemination of annual review and in an instance of change in rating will be made. (Chapter III; 17-(b))
    3. PACRA initiates an immediate review of the outstanding rating upon becoming aware of any information that may reasonably be expected to result in downgrading of the rating. (Chapter III; 17-(c))
    4. PACRA engages with the issuer and the debt securities trustee to remain updated on all information pertaining to the rating of the entity/instrument. (Chapter III; 17-(d))
  6. Probability of Default
    1. PACRA’s Rating Scale reflects the expectation of credit risk. The highest rating has the lowest relative likelihood of default (i.e., probability). PACRA’s transition studies capture the historical performance behavior of a specific rating notch. Transition behavior of the assigned rating can be obtained from PACRA’s Transition Study available at our website. (www.pacra.com) However, the actual transition of rating may not follow the pattern observed in the past. (Chapter III; 14-3(f)(vii))
  7. Proprietary Information
    1. All information contained herein is considered proprietary by PACRA. Hence, none of the information in this document can be copied or otherwise reproduced, stored, or disseminated in whole or in part in any form or by any means whatsoever by any person without PACRA’s prior written consent.

May-26

www.pacra.com