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The Pakistan Credit Rating Agency Limited
Press Release

Date
08-Mar-22

Analyst
Madiha Sohail
madiha.sohail@pacra.com
+92-42-35869504
www.pacra.com

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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 Cash Fund

Rating Type Stability Rating
Current
(08-Mar-22 )
Previous
(04-Sep-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, the Fund had allocated ~91% of fund's assets as Cash in Bank Accounts of which ~87% in bank having rating AA and ~4% in bank having rating AA+. As per the investment policy AKD cash fund can invest up to 100% as Cash in Bank Accounts having rating of AA and above. ~7% in Commercial Paper having rating AA and ~2% in others. Since Jun'21, the net assets of the Fund significantly increased by ~118% and stood at PKR 912mln. The unit holding pattern of the Fund is highly concentrated in top10 investors which represents ~88% 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 6 days, while the duration remained 6 days, at Dec'21. The Fund remained compliant with the limit.
Going forward, the Fund intends to maintain/increase its exposure to short term liquid avenues, 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, while credit quality and duration 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.

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.