Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Stability Rating of AKD Islamic Income Fund
Rating Type | Stability Rating | |
Current (08-Mar-22 ) |
Previous (04-Sep-21 ) |
|
Action | Maintain | Maintain |
Long Term | A+(f) | A+(f) |
Short Term | - | - |
Outlook | Stable | Stable |
Rating Watch | - | - |
The rating of AKD Islamic Income Fund (or the "Fund") reflects the fund's moderate risk profile. The Fund had allocated ~42% of the Fund's assets as bank deposits having rating of ‘AA’, ~16% in Bank Placements having rating A+, ~9% in Commercial Paper having rating AA whereas ~32% to Sukuk/TFCs having rating ‘A+’ and above. The net assets of the Fund was slightly declined by ~2% and stood at ~PKR 708mln. The unit holding pattern of the fund emanates moderate liquidity risk as top 10 investors represent ~80% of the fund's assets. The Fund weighted average maturity (WAM) stood at 347 days, impacting the Fund's credit risk and the duration is 36 days, limiting the exposure to interest rate risk.
Going forward, the fund intends to maintain/increase its current exposure in bank placements and Sukuk or/and TFCs. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
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 seven open-end funds with assets under management of ~PKR 7bln at end Dec'21.