Muhammad Zain Ayaz
PACRA Maintains Stability Rating of AKD Cash Fund
|Rating Type||Stability Rating|
The rating of AKD Cash Fund (or the "Fund") reflects the fund's low risk profile emanating from its portfolio allocation towards low risk avenues. At end Dec'20, the Fund's assets primarily invested in T-bills ~59%, whereas ~10% were placed with different avenues including CPs and bank deposits. Other assets includes receivables accounts for ~31% of fund's assets, which would be likely to be converted to T-Bills, going forward. Since Jun'20, the net assets of the fund slightly decreased by 8% and stood at PKR 489mln. However, the Fund managed to increase its NAV by 3%. The unit holding pattern of the fund is highly concentrated in top10 investors which represents 85% of the fund's assets and exposing the Fund to redemption pressure. The investment policy of the fund strictly prohibits the investments below AA rated avenues. Weighted average maturity (WAM) of the Fund is capped at 90 days and during CY20, the Fund remained compliant with the limit.
Going forward, the fund intends to maintain/increase its exposure to short term 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 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 6.5bln at end Dec'20