The Pakistan Credit Rating Agency Limited
Press Release


Muhammad Zain Ayaz

Applicable Criteria

Related Research

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Stability Rating of AKD Islamic Income Fund

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

AKD Islamic Income Fund's (or the "Fund") 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 Jun'21, ~36% of the Fund's assets were allocated to bank (rated 'AA'), ~26% in Sukuks and ~34% in spread transactions. As per the investment policy, the Fund can invest up to 75% in sukuks and 40% in spread transactions, the current strategy is in line with the investment policy. The net assets of the Fund has shown an increase of ~100% and stood at ~PKR 724mln. The Fund consistently manage to stabilize the returns during FY21 and beat the benchmark along with industry average. The unit holding pattern of the fund emanates moderate liquidity risk as top 10 investors represent ~88% of the fund's assets. The Fund weighted average maturity (WAM) stood at 252 days and the duration is 34 days.
Going forward, the fund intends to maintain/increase its current exposure in bank placements and Sukuk or/and 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.

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.