PACRA Maintains Stability Rating of AKD Aggressive Income Fund

AKD Aggressive Income Fund ('AKD AIF' or the 'Fund') reflects the medium risk profile. The investment objective of the Fund is to offer investors a convenient vehicle to invest in a diversified portfolio of fixed income securities/ instruments that provide consistent returns with concern for preservation of capital over the longer term. The assigned rating reflects the Fund's low credit risk profile, supported by its significant allocation to government securities and highly rated instruments. At the end-December 2024, in terms of asset allocation, the Fund had allocated ~59.8% in T-Bills, serving as the primary liquidity reservoir with negligible credit risk, which provides a stable liquidity base, ~10.11% in PIBs, introducing some interest rate sensitivity, ~9.88% in Spread Transactions, ~8.85% in TFC/Sukuk, ~4.88% in Commercial Paper/ Short Term Sukuk, ~0.57% in GoP Ijarah Sukuk, and ~3.08% in Others. From a credit quality perspective, ~70% was invested in Government securities/AAA rated instruments, suggesting a strong credit foundation, while the remaining allocations included ~3% in AA+, ~7% in AA-, ~2% in A+, ~5% in A1, and some unrated exposures. As of December 2024, the Fund's size was ~PKR 789mln. The Weighted Average Maturity (WAM) of the Fund stood at 207 days at the end-Dec'24, indicating a moderate to high exposure to credit risk due to its relatively longer tenor profile.
Going forward, any material changes in the investment policy and compliance with the rating criteria for the assigned rating would have an impact on the ratings.

About the Entity
AKD Investment Management Limited commenced its operations in September 2004. The Company is registered as an Asset Management Company under the Non-Banking Finance Companies Rules, 2003. The Company is sponsored by AKD Group Holdings (Private) Limited [Formerly: Aqeel Karim Dhedhi Securities(Private) Limited] (99.97% ownership). The Board of Directors of the Company 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. The Company is currently managing eight open-end funds with assets under management of ~PKR 9,752mln at the end of Dec'24.