PACRA Maintains Stability Rating of AKD Islamic Income Fund

AKD Islamic Income Fund ("AKDISIF or the "Fund") is a low risk profile Fund. The investment objective of the Fund is to provide investors with an investment vehicle that strives to enhance capital coupled with regular halal income by investing in Shariah-compliant income investments. The asset allocation of the Fund as at end Jun'24 was ~39.7% in Bank Placements, ~24.8% in Sukuk, ~18.9% in Govt Securities, ~12.9% in Commercial Papers/Short-term Sukuk, and ~3.8% in other assets. The credit quality of the Fund stood at ~40.0% in AA, ~34.0% in A, ~22.0% in Govt Securities/AAA, and ~4.0% in other avenues. The WAM of the Fund stood at 262 days at the end of Jun'24; exposing the Fund to high credit risk. The credit risk is managed through investment in Govt Securities. The duration of the Fund was 90 days at the end of Jun’24, exposing the Fund to moderate Interest rate risk. As of Jun'24, the unit holding pattern of the Fund was ~68.6% representing top ten investor concentration; exposing the Fund to high 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.