The Pakistan Credit Rating Agency Limited
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Muhammad Zain Ayaz

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PACRA Maintains Stability Rating of AKD Aggressive Income Fund

Rating Type Stability Rating
(04-Sep-21 )
(04-Mar-21 )
Action Maintain 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. It is a dedicated Fund that focuses primarily on fixed income securities and instruments. The Fund is restricted to invest in avenues having rating not less than "A+" (Single A Plus). The credit quality is expected to remain strong. Investment in these securities would also improve the liquidity profile of the Fund, given relative ease in transactions. At end Jun'21, ~10% of Fund's assets were invested in T-Bills, ~33% in Sukuk/TFCs, whereas ~38% are placed in spread transactions. The unit holding pattern of the Fund reflects high concentration risk as top 10 investors represent ~88% of the Fund's assets. The WAM of the fund is 526 days and the duration is 69 days.
Going forward, the fund intends to maintain its exposure in government securities and maintain or/and 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 8.6bln at end Jun'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.