The Pakistan Credit Rating Agency Limited
07-Sep-22
Analyst
Muhammad Azmat Shaheen
azmat.shaheen@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Maintains Stability Rating of AKD Aggressive Income Fund
| Rating Type | Stability Rating | |
|
Current (07-Sep-22 ) |
Previous (07-Mar-22 ) |
|
| Action | Maintain | Upgrade |
| Long Term | A+(f) | A+(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating reflects the Fund's moderate credit quality and liquidity profile. At end Jun'22, 39% of Fund's assets were invested in TFCs/Sukuk, 22.5% in Spread Transactions, 20.7% in Commercial Papers, 10.5% in T-Bills whereas, 3.3% was Cash. The weighted average maturity stands at a high 489 days mainly due to investments in long-term instruments. The Duration of 75 days shows a moderate interest rate risk. The unit holding pattern of the Fund reflects high concentration risk as top 10 investors represent 95.8% of the Fund's assets which shows high redemption risk.
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.
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 6.8bln at end Jun'22.