PACRA Maintains Stability Rating of AKD Cash Fund

AKD Cash Fund ("AKD CF" or the "Fund") is a low-risk profile Fund. The investment objective of the Fund is to provide optimum returns consistent with minimal risk from a portfolio constituted of high-quality short-term securities/instruments, which will provide liquidity. The Fund will invest in highly secure ('AA' and above) short-term debt instruments such that the WAM of its net assets will stay below 90 days. At the end of Jun'24, the exposure in T-bills was ~54.5%, ~13.0% in Commercial Papers/Short-term Sukuk, Bank Placements was 30.4%, and ~2.1% in other assets. The Fund has invested ~55% in Govt Securities/AAA, ~43% in AA, and ~2% in other avenues. The WAM of the Fund stood at 37 days at the end of Jun'24; limiting the Fund's exposure to credit risk. The duration of the Fund was 37 days at the end of Jun’24, limiting the Fund's exposure to Interest rate risk. As of Jun'24, the unit holding pattern of the Fund was 56.4~% representing top ten investor concentration; exposing the Fund to high redemption pressure. The redemption risk is managed through managing sufficient liquidity.
Going forward, any material changes in the investment policy or devised rating criteria for the assigned rating would have an impact on the ratings.

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 7.5bln at the end of Jun'24.