PACRA Maintains Stability Rating of AKD Islamic Daily Dividend Fund

AKD Islamic Daily Dividend Fund ("AKD IDDF" or the "Fund") is a low risk profile Fund. 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. The asset allocation of the Fund stood at ~44.5% in Bank Placements, ~37.1% in Govt Securities, ~14.6% in Commercial Papers/Short-term Sukuk, and ~3.8% in other assets. The credit quality of the Fund stood at ~59% in AA, ~37% in Govt Securities/AAA, and ~4.0% in other avenues. The WAM and Duration of the fund stood at 45 days respectively, exposing the Fund to very low Credit risk and Interest rate risk at the end of Jun'24. The unit holding pattern of the Fund was ~99.76% representing top ten investor concentration; exposing the Fund to very high level of redemption pressure. The redemption risk is managed through maintaining 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.