PACRA maintains Stability Rating of AKD Aggressive Income Fund
|Rating Type||Stability Rating|
The rating reflects the Fund's moderate credit quality and liquidity profile. At the end Dec'22, ~32.4% of the Fund was invested in TFCs/Sukuk, ~24.4% in T-bills, ~13.8% in Commercial papers/Short term Sukuks, ~11.5% in Spread Transactions, and 3.8% was Cash. At the end of Dec'22, the weighted average maturity of the Fund was at a high 411 days mainly due to investments in long-term instruments; exposing the fund to credit risk. However, the duration stood at 87 days depicting moderate interest rate risk. The unit holding pattern of the Fund reflects high concentration risk as top 10 investors represent 98.5% 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.
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 6.4bln at end Dec'22