PACRA maintains Asset Manager Rating of AKD Investment Management Limited

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.
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.

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.