PACRA Maintains Stability Rating of AKD Islamic Income Fund

AKD Islamic Income Fund (‘AKD IIF’ or the ‘Fund’) is a medium risk profile Fund. The investment objective of the Fund is to provide investors with an investment vehicle that strives to enhance capital coupled with a regular halal income by investing in Shariah Compliant income investments. At the end of Dec'24, in terms of asset allocation, the exposure in Cash is ~20.75%, ~46.84% in GoP Ijarah Sukuk, and ~23.04% in Sukuk, ~7.84% in others including receivables, and ~1.53% in Short term sukuk. At the end December'2024, in perspective of credit quality, the Fund had allocated ~50% in Government Securities/ AAA rated avenues, ~22% in AA, ~19% in AA-, ~2% in A+, and the remaining ~8% in unrated avenues. The Fund’s Weighted Average Maturity (WAM) stood at 457 days as of end-December, reflecting a relatively longer-term investment horizon, which may increase exposure to credit and spread-related risks. However, this is partially offset by the Fund’s sizable allocation to government-backed securities, which helps support overall credit quality.
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.