PACRA Maintains Stability Rating of AKD Islamic Daily Dividend Fund

AKD Islamic Daily Dividend Fund ("AKD IDDF" or the "Fund") reflects the Fund's low-risk profile. The investment objective of the Fund is to provide a competitive return in the form of daily dividends by investing in low-risk and highly liquid Sharia-compliant money market instruments. At the end of Dec'23, the exposure in Commercial Papers / Short Term Sukuk (STS) was 7.9%, Cash was 75.9%, and 14.4% in G-Sec. The WAM and Duration of the fund stood at 23 days respectively limiting the fund exposure to Credit risk and Interest rate risk at the end of Dec'23, the unit holding pattern of the Fund was ~99.97% representing top ten investor concentration; exposing the Fund to a high level of redemption pressure.
Going forward, the Fund intends to maintain in Cash while building a position towards AAA-rated avenues. Material changes in the fund's asset allocation strategy, impacting its credit quality and/or exposure to interest rate risk, would affect its rating. The assigned rating would remain dependent on the compliance with assigned rating criteria.

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 eight open-end funds with assets under management of ~PKR 8bln at the end of Dec'23.