The Pakistan Credit Rating Agency Limited
07-Mar-22
Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
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PACRA Upgrades Stability Rating of AKD Aggressive Income Fund
| Rating Type | Stability Rating | |
|
Current (07-Mar-22 ) |
Previous (04-Sep-21 ) |
|
| Action | Upgrade | Maintain |
| Long Term | A+(f) | A(f) |
| Short Term | - | - |
| Outlook | Stable | Stable |
| Rating Watch | - | - |
The rating of AKD Aggressive Income Fund (or the "Fund") reflects the fund's moderate risk profile. At end Dec’21, ~18% of the assets were invested in Sukuks/TFCs having rating of A+ and above whereas, 8% was in TFCs having rating of BBB+. Spread Transactions were 13% of the assets, ~9% were in Commercial Papers, ~7% in Government Securities and ~22 were Cash in banks. The WAM of the fund is 426 days and the duration is 49 days. The top 10 investors’ concentration of the Fund, at Dec’21 was ~88%.
The improved rating is based on Fund's allocation strategy. Material changes in the Fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect its rating. While overall credit quality and duration of the Fund would remain imperative.
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 7bln at end Dec'21.