PACRA Maintains Stability Rating of AKD Cash Fund
|Rating Type||Stability Rating|
The rating reflects the fund's low risk profile emanating from its portfolio allocation towards low risk avenues. At end Jun'20, ~87% of fund's assets were allocated to Government-guaranteed T-Bills , whereas ~12% were placed with different other avenues, in order to diversify the portfolio's revenue streams and increase NAV stability. The unit holding pattern of the fund emanates higher liquidity risk as top 10 investors represent 89% of the fund's assets.
Going forward, the fund intends to maintain/increase its exposure to government securities, while the rating remains dependent on maintaining exposure with high credit quality financial institutions. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect the rating.
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 Aqeel Karim Dhedhi Securities (Pvt) Limited (99.97% ownership). Aqeel Karim Dhedhi Securities (Pvt) Limited is majority-owned by Mr. Aqeel Karim Dhedhi, Chairman of the AKD Group, a renowned figure in Pakistan's capital markets.
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 4.6bln at end Jun'20.