PACRA Maintains Stability Rating of AKD Islamic Income Fund
|Rating Type||Stability Rating|
The rating reflects the fund's moderate credit risk profile emanating from its investment strategy to invest in good credit quality investment avenues with sound liquidity. At end Dec'19, ~86% of the fund's assets were allocated to bank placements ('AA' rated), whereas ~12% to Sukuk/TFCs. The unit holding pattern of the fund emanates moderate liquidity risk as top 10 investors represent ~74% of the fund's assets.
Going forward, the fund intends to maintain its current exposure in bank placements and Sukuk/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.
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 5.4bln at end Dec'19.