Muhammad Zain Ayaz
PACRA Maintains Stability Rating of AKD Aggressive Income Fund
|Rating Type||Stability Rating|
AKD Aggressive Income Fund (or the "Fund") is a dedicated fund that focuses primarily on fixed income securities and instruments. The Fund is restricted to invest in avenues having rating not less than "A+" (Single A Plus). The credit quality is expected to remain strong. Investment in these securities would also improve the liquidity profile of the fund, given relative ease in transactions. At end Dec'20, ~26% of Fund's assets were invested in T-Bills, ~36% in Sukuk/TFCs, whereas ~1% and ~2.5% of assets were placed in cash at bank and CPs respectively. The Fund size manifested increase by ~15% since Jun'20. Whereas, the unit holding pattern of the fund reflects high concentration risk as top 10 investors represent ~91% of the fund's assets. The WAM of the fund is high but stable in comparison with last period of review.
Going forward, the fund intends to maintain its exposure in government securities and maintain/increase allocation towards Sukuk/TFCs, given the avenues available for investing. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect its rating. There is a single investment below A rating category, which the fund intends to replace with higher ratings. Hence, the Rating Watch is assigned.
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.