The Pakistan Credit Rating Agency Limited
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Muhammad Zain Ayaz

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PACRA Maintains Stability Rating of AKD Cash Fund

Rating Type Stability Rating
(04-Sep-21 )
(04-Mar-21 )
Action Maintain Maintain
Long Term AA+(f) AA+(f)
Short Term - -
Outlook Stable Stable
Rating Watch - -

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 Jun'21, the Fund's assets primarily invested in T-bills ~99%. Since Dec'20, the net assets of the Fund slightly decreased by ~14% and stood at PKR 419mln. The unit holding pattern of the Fund is highly concentrated in top10 investors which represents ~89% 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, the current strategy is in line with the investment policy. Weighted average maturity (WAM) of the Fund is capped at 90 days, 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

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 8.6bln at end Jun'21

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.