The Pakistan Credit Rating Agency Limited
08-Mar-23
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA maintains Stability Rating of AKD Cash Fund
| Rating Type | Stability Rating | |
|
Current (08-Mar-23 ) |
Previous (07-Sep-22 ) |
|
| Action | Maintain | Maintain |
| Long Term | AA+(f) | AA+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects the Fund's low risk profile emanating from its portfolio allocation towards low-risk avenues. At end Dec'22, the Fund's exposure in T-Bills was ~78.5%, ~20.2% in Commercial Papers/Short Term Sukuks and 0.7% was Cash. Since Jun'22, the net assets of the Fund increased by 28.7% and stood at PKR 1,639mln. The unit holding pattern of the Fund is highly concentrated in top10 investors which represents ~85.4% of the fund's assets and exposing the Fund to redemption pressure. At the end of Dec'22, the weighted average maturity and duration of the Fund was at 63 days, representing low inflation and interest rate risks. The investment policy of the Fund strictly prohibits the investments below AA rated avenues.
Going forward, the Fund intends to maintain/increase its exposure to Short Term Government Securities and Commercial Papers/Short Term Sukuks. 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 6.4bln at end Dec'22.